July payroll updates employers should have on their radar

With the start of a new financial year, there are a few important payroll changes and deadlines all employers should be aware of.

These include minimum wages and award rate increases, Payday Super, and STP finalisation obligations for the 2026 financial year.

 

minimum wage + award rate increases

 

Minimum award wages and the national minimum wage are increasing from 1 July 2026.

The national minimum wage will increase to $26.44 per hour, or $1,004.90 per week, and minimum award wages will increase by 4.75%. [see the Fair Work annual wage review]

Employers should review pay rates, allowances, salary arrangements, annualised wages and enterprise agreements to ensure employees are still being paid correctly under the relevant award or agreement.

This review should not be limited to hourly employees. Salaried employees can also be impacted if their salary no longer leaves them better off when compared to the updated award rates, allowances, overtime, penalty rates or loadings.

Employers can check whether pay rates, allowances and salary arrangements for award-covered employees are compliant using the Fair Work pay guides.

 

when the new rates apply

 

The new rates apply from the first full pay period that starts on or after 1 July 2026.

This means they may not apply from the first pay run in July. For example, if your weekly pay period runs Monday to Sunday, the new rates will generally apply from Monday 6 July 2026.

 

Payday Super starts from 1 July 2026

 

From 1 July 2026, employers will need to pay super at the same time as wages, instead of the current quarterly schedule.

In practice, super will need to reach the employee’s super fund within 7 business days of payday, so employers should check their payroll software, clearing house, bank processing times and cashflow to ensure they can meet the new requirements.

The super guarantee rate remains 12%, so the key change is timing and process, rather than the percentage rate.

This is a significant change to payroll routines and cashflow. Super is now a regular payroll obligation, so it is worth reviewing your process now rather than waiting until the first pay run in July.

For more information check out Lielette Calleja’s blog on preparing for Payday Super.

 

PAYG withholding + payroll software updates

 

From 1 July 2026, updated PAYG withholding rates apply, including a reduction in the 16% tax rate to 15% for taxable income between $18,201 and $45,000.

Most cloud payroll systems will automatically update their tax tables. Employers should still check their payroll software has applied the updated tax tables before processing their first pay run for the new financial year.

 

STP finalisations

 

STP finalisation is the year-end process and declaration employers complete through their payroll software to confirm that the income, tax and super information reported to the ATO for each employee is complete and correct.

Once finalised, employees can access their income statement through myGov and use it to lodge their tax return. STP finalisations are due shortly after year-end. For most employees, the finalisation declaration is due by 14 July 2026.

For closely held payees, the due date can be later. Where an employer has both closely held and arm’s length employees, the closely held payee finalisation is generally due by 30 September. Where a small employer only has closely held payees, the due date is generally the income tax return due date.

 

what employers should do now

 

Employers need to prioritise reviewing pay rates, checking payroll settings, confirming super payment processes and making sure STP finalisations are completed on time.

Getting your payroll house in order now will help avoid underpayments, missed deadlines and payroll issues this financial year.

 

we’re here to help

If you’d like to understand how these payroll updates may impact your business, our team is here to help.

Reach out to your usual contact at businessDEPOT, email oneplace@businessdepot.com.au or give us a buzz on 1300 BDEPOT.

 

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