The new financial year begins on 1 July 2026 — and this year brings a significant number of changes to wages, superannuation, tax, and how businesses operate. Whether you are an employee, a small business owner, or managing your own savings, here is what you need to know.
Minimum wage increases
From 1 July 2026, the National Minimum Wage increases by approximately 6% for award and agreement-free employees — rising from $24.95 to AUD $26.44 per hour, or $1,004.90 per week. Modern award wages increase by 4.75% across the board.
Both increases take effect from the first full pay period on or after 1 July 2026. Almost three million workers are covered by the decision.
If you are sending money home to family from Australia, a higher minimum wage means more take-home pay — and more to send.
Payday super: super paid with every pay run
One of the most significant changes for workers from 1 July 2026 is Payday Super — employers are now required to pay superannuation at the same time as wages, rather than quarterly.
Previously, employers could wait up to three months before paying compulsory super contributions. From 1 July, super must be paid weekly, fortnightly or monthly — in line with the pay cycle.
Why this matters: The ATO estimates that AUD $6.25 billion in super went unpaid to workers in the most recent year on record. Payday Super is designed to close that gap and ensure workers receive their 12% super contribution on time, every time.
If you are an employee, this change means your retirement savings start compounding sooner. If you are an employer, your payroll systems need to be updated before 1 July.
Note: The Small Business Super Clearing House (SBSCH) closes permanently on 1 July 2026. Businesses using it must transition to an alternative super payment service before then.
New instant tax deduction of $1,000
From the 2026-27 income year (returns lodged from July 2027), workers can claim a $1,000 instant tax deduction for work-related expenses — without needing to keep receipts.
Over 6 million Australians are expected to benefit, with an average tax saving of $205 for the 2026-27 income year. If you want to claim more than $1,000 in work-related deductions, you can still do so the usual way with receipts.
This change simplifies tax returns for the majority of workers who make modest claims. It does not apply to the current 2025-26 income year — only to returns lodged from 2027 onwards.
Super tax changes for large balances
From 1 July 2026, superannuation balances over $3 million will have investment earnings on the amount above that threshold taxed at an additional 15% — bringing the effective tax rate on those earnings to 30%.
This change affects a very small number of Australians. If your super balance is approaching $3 million, speak with a financial adviser about your strategy.
Small business: instant asset write-off made permanent
From 1 July 2026, the $20,000 instant asset write-off for small businesses is made permanent. Small businesses with annual turnover below $10 million can immediately deduct eligible assets costing less than $20,000.
Previously this threshold was extended year-by-year — it now has no end date, giving small business owners certainty when planning equipment and asset purchases.
Anti-scam changes: SMS sender ID registration
From 1 July 2026, businesses that send branded text messages must register their sender ID with the new SMS Sender ID Register. Text messages sent with an unregistered branded sender ID will now show as “Unverified” rather than displaying the brand name.
This is designed to protect Australians from SMS scams where criminals impersonate brands like Australia Post or the ATO. Australians lost nearly AUD $18 million to text message scams last year.
What this means if you send money overseas
If you are a migrant in Australia sending money home, 1 July brings several positive changes:
- A higher minimum wage means more take-home pay each week
- Payday super means your retirement savings accumulate faster
- The $1,000 instant tax deduction simplifies your next tax return
OrbitRemit supports fast, affordable transfers from Australia to 52+ countries — with flat fees shown upfront and no hidden charges.
Summary: what changes on 1 July 2026
| Change | Detail |
|---|---|
| National Minimum Wage | Increases ~6% to AUD $26.44/hour; modern award wages up 4.75% |
| Payday Super | Super paid with every pay run — no more quarterly delays |
| SBSCH closure | Small Business Super Clearing House closes permanently |
| $1,000 instant tax deduction | From 2026-27 income year — no receipts required |
| Super tax on balances over $3M | Additional 15% tax on investment earnings above $3M threshold |
| $20,000 instant asset write-off | Made permanent for small businesses under $10M turnover |
| SMS Sender ID Register | Unregistered branded texts labelled “Unverified” |
This article is for general information only and does not constitute financial or tax advice. For advice on how these changes affect your personal situation, consult a registered tax agent or financial adviser. Information is based on Australian Government announcements as of June 2026.
Sources: business.gov.au | budget.gov.au | Fair Work Commission National Minimum Wage Order 2026
