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1. Minimum wages increased – 1 July 2026
The National Minimum Wage increased by 4.75% from 1 July 2026.
The new National Minimum Wage is:
- $1,004.90 per week
- $26.44 per hour
Minimum rates under modern awards also increased by 4.75%, subject to the specific provisions of each award.
The new rates generally apply from the first full pay period commencing on or after 1 July 2026.
What employers should do:
Check the award and classification applying to each employee and ensure payroll rates, allowances and penalty rates have been updated.
2. Superannuation is now "payday super" – from 1 July 2026
Employers are now required to pay employees' superannuation at the same time as wages are paid.
Super contributions must generally reach the employee's nominated fund within 7 business days of the wage payment.
This replaces the previous system, under which superannuation generally had to be paid at least quarterly.
What employers should do:
Check that payroll and accounting systems are set up for the new payment timing and that super payments are being made correctly and on time.
3. Right to disconnect – small business from 26 August 2025
Employees of businesses with fewer than 15 employees gained the right to disconnect from work-related contact outside their normal working hours from 26 August 2025.
Employees can generally refuse to monitor, read or respond to work-related contact outside their working hours unless that refusal is unreasonable.
The circumstances of the particular employee and employer must be considered.
What employers should do:
Set reasonable expectations about after-hours contact and avoid assuming that employees are available simply because they have a phone or email account.
4. Casual employment rules changed
From 26 August 2025, eligible casual employees of small businesses gained access to the employee choice pathway to request a change from casual to permanent employment.
Generally, an eligible small-business casual employee who has been employed for at least 12 months may notify their employer that they want to become a permanent employee if they believe they no longer meet the legal definition of a casual employee.
An employer can only refuse in specified circumstances.
What employers should do:
Review casual arrangements regularly and ensure that employees engaged as casuals genuinely meet the current definition of casual employment.
5. Penalty and overtime rates protected
Changes to the Fair Work Act from August 2025 require the Fair Work Commission to consider a new principle protecting penalty rates and overtime rates when making or changing modern awards.
The changes are particularly relevant to work involving overtime, weekends, public holidays, shifts and other unsocial or irregular hours.
What employers should do:
Continue to check the applicable award rather than assuming that an existing pay arrangement automatically covers penalty and overtime obligations.
6. Employer-funded parental leave protections strengthened
Changes commencing in November 2025 provide additional protection for employees receiving employer-funded paid parental leave where a child is stillborn or dies after birth.
An employer cannot refuse or cancel an employee's entitlement to employer-funded paid parental leave because of these circumstances.
What employers should do:
Ensure parental leave policies and payroll procedures reflect the current legislation.
7. Parental Leave Pay increased – 1 July 2026
Government-funded Parental Leave Pay increased to 130 days for eligible parents from 1 July 2026.
This is a government-funded entitlement rather than an additional general wage cost imposed directly on employers.
Superannuation contributions on government-funded Parental Leave Pay also commenced being paid by the Australian Taxation Office from July 2026 for eligible births or adoptions covered by the new arrangements.
What employers should do:
Make sure payroll and leave records properly distinguish government-funded parental leave from any employer-funded parental leave entitlement.
8. Employment thresholds increased – 1 July 2026
From 1 July 2026, the high income threshold increased to $190,100.
The compensation cap applying to unfair dismissal claims increased to $95,050.
These thresholds are relevant to certain Fair Work Act rights and remedies.
What employers should do:
Consider the current thresholds when dealing with senior or highly paid employees and when assessing employment arrangements or potential termination issues.
What should a small business employer do now?
At a minimum, small businesses should check that:
☐ Employee pay rates have been updated for the 2026 minimum wage and award increases
☐ Award classifications and penalty/overtime rates are correct
☐ Superannuation is being paid under the new payday-super arrangements
☐ Casual employees are correctly classified and their status is reviewed periodically
☐ Managers understand the right to disconnect
☐ Employment contracts, policies and staff handbooks reflect current requirements
☐ Parental leave procedures are up to date
☐ Employee records and payroll systems are accurate
Workplace laws change regularly. Employers should check the current requirements rather than relying on older contracts, policies or advice.
Further information
For current and authoritative information, small businesses should refer to:
Fair Work Ombudsman – Small Business
Latest workplace news for small business
Fair Work Ombudsman – Changes to workplace laws
Workplace legislation changes
Fair Work Ombudsman – 2026 minimum wage increase
2026 Annual Wage Review and minimum wages
Fair Work Ombudsman – Right to disconnect
Right to disconnect
Australian Taxation Office – Payday Super
Payday Super
Information current as at September 2026. This is general information only and is not a substitute for advice about a particular employment situation.