- Date:
- 1 July 2026
The VGSO Workplace Relations team has prepared a guide to the key changes to employment law and superannuation guarantee (SG) rates, fees, caps and thresholds, as well as brand new measures, commencing 1 July 2026.
1 July 2026 employment law rates, fees, caps and thresholds
| Rate/fee/cap/threshold | Change |
| High income threshold1 | $190,100 per annum (up from $183,100) |
| Unfair dismissal claims compensation cap | $95,050 per annum (up from $91,550) |
| Minimum modern award rate | 4.75% (last year was 3.5%) |
| National minimum wage (applies to first pay period on or after 1 July) | $26.44 per hour (up from $24.95) ($33.05 for casuals - 25% loading) and $1,004.90 per week (up from $948.00) |
| Tax free component of genuine redundancy payments | $13,598 plus $6,801 per year of service (up from $13,100 plus $6,552 per year of service) |
| Government parental leave pay (PLP) | 26 weeks (up from 24 weeks) |
| PLP reserved for each parent in a couple on a 'use-it-or-lose-it' basis | 4 weeks (up from 3 weeks) |
| PLP annual income thresholds | Individuals: $186,487 (up from $180,007) Family: $386,525 (up from $373,094) |
| Civil penalty unit rate | $209.10 (up from $203.51) |
| Fair Work Commission filing fee | $92.70 (up from $89.70) |
1 July 2026 SG caps, thresholds and measures
| Cap/threshold/measure | Change |
| 'Payday Super' - employers will need to pay SG2 at the same time they pay salary or wages and SG must be received by funds within 7 days | Currently, SG payments must be received by a fund within 28 days of the end of each quarter |
| Payments that attract SG - 'Ordinary Time Earnings' (OTE) will be replaced with 'Qualifying Earnings' (QE) | QE includes OTE, salary sacrificed amounts, commissions and earnings to workers under expanded definition of employee |
| Pre-tax concessional superannuation contributions cap (includes employer SG contributions and salary sacrifice) | $32,500 (up from $30,000) |
| Maximum SG contributions base threshold3 | Annual figure of $270,830 (previously quarterly amount of $62,500) |
1 Limits the ability of a non award or enterprise bargaining agreement (EBA) covered employee to apply for unfair dismissal. Fixed term contract restrictions may also not apply if the employee’s guaranteed annual earnings are above this amount.
2 The SG rate of 12% remains the same.
3 Once an employee has earned this amount an employer is not obligated to make SG contributions (subject to awards and EBAs).
Action for employers
Employers should:
- confirm wage rates for award covered employees meet new minimum rates
- check the base rate of employees covered by an EBA remain at or above modern award minimums
- ensure annualised salary arrangements satisfy award obligations including 'outer limits'
- update payroll systems to support per-pay-cycle and ensure both QE and SG are included in single touch payroll reporting
- identify SG underpayments as employees can take action under the Fair Work Act 2009 (Cth) to recover unpaid SG, if the ATO has not already.
Other key 1 July 2026 changes and developments
From 1 July 2026, Victoria will become the only jurisdiction to have new restrictions on the use of non-disclosure agreements in workplace sexual harassment matters. See below for our most recent articles on this change and other recent employment law developments.
Contact our team
The VGSO's Workplace Relations and Occupational Safety team is available to assist employers work through the new 1 July 2026 changes as well as provide tailored advice and support for all workplace relations issues.
Rebecca Best
Lead Counsel
Dana Wintermantel
Lead Counsel
Mick Carrick
Acting Lead Counsel
Ronan O'Donnell
Managing Principal Solicitor
Laura Myer
Managing Principal Solicitor
Updated