Key takeaways
Minimum wage rates rise by 4.75% under the national system, effective July 1 2026.
From 1 July 2026, Services Australia will increase the amount of Parental Leave pay from 120 days to 130 days.
A tax cut has taken effect for individual resident taxpayers, with another scheduled for FY2028. Several significant changes have been made to the superannuation regime.
The beginning of the 2026/27 financial year introduces many significant regulatory changes affecting minimum wage entitlements, unfair dismissal thresholds and key taxation settings. These reforms have immediate implications for employers.
In this article we provide an overview of the major updates taking effect from 1 July 2026, including adjustments to modern award and minimum wage rates, revised high‑income thresholds, changes to contractor protections, updates to the Paid Parental Leave scheme and increases to civil penalty amounts under the Fair Work Act 2009 (Cth).
Employment law changes
Increases to minimum wage rates for national system employers
Changes to minimum wage rates for Western Australia system employers
Changes to unfair dismissal protection thresholds
Contractor High Income Threshold
Paid Parental Leave scheme changes
Key tax rate and threshold changes
Civil penalties
Fair Work Ombudsman Information Statements
Employment termination payments (ETP)
Genuine redundancy payments
Superannuation
Australian Resident Tax Rates FY2027
| Tax rate | Taxable income |
|---|---|
| Nil rate | $0 - $18,200 |
| 15% (reduced from 16%) | $18,201 - $45,000 |
| 30% | $45,001 - $135,000 |
| 37% | $135,001 - $190,000 |
| 45% | $190,001+ |
These rates exclude the standard 2% medicare levy. A further reduction of this specific bracket rate from 15% to 14% is legislated to take effect on 1 July 2027.
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For more information about the changes to be introduced, please contact our Workplace and Employment Law and Taxation teams.