What changes for your business from 1 July 2026

Every new financial year brings change. This one brings more than most. Payday super arrives on 1 July, the biggest change to super since it started, and it lands alongside wage rises, the next round of tax cuts and a permanent instant asset write-off. Here are the changes that matter for your business, and what each one means in practice.

Payroll and super

Payday super starts

From 1 July, super guarantee must be paid at the same time as wages, not quarterly, and contributions need to reach an employee’s fund within 7 business days of payday. The Australian Taxation Office (ATO) is overseeing the change and won’t penalise employers who are genuinely trying to do the right thing in the first year. The practical side is simple: Xero is already payday super compliant, so you just pay super through Xero when you run payroll. If your payroll still runs on a quarterly cycle, now is the time to move across.

Minimum wage and award rates rise

The national minimum wage increases by nearly 6% to $26.44 an hour, or $1,004.90 a week, and award rates rise by 4.75%, covering far more workers. Award rates differ by industry and classification, so check the updated pay rates summary for your industry on the Fair Work Ombudsman website and update your payroll from the first full pay period in July.

Income tax cut

The tax rate on income between $18,201 and $45,000 drops from 16% to 15%, worth up to $268 a year, with a further cut to 14% legislated for July 2027. For employers there’s nothing to action: it flows through automatically via updated PAYG withholding in Xero.

Unfair dismissal threshold lifts

The high-income threshold for unfair dismissal rises from $183,100 to $190,100. Employees above it who aren’t covered by an award or enterprise agreement can’t access unfair dismissal protections, so it’s worth knowing where senior staff sit before any performance or restructure decision

Paid parental leave expands

Government-funded paid parental leave increases to 130 days (26 weeks) for children born or adopted from 1 July, up from 120 days. Partner-reserved days rise from 15 to 20, single parents can access all 130, and the leave sits on top of any employer-funded leave you offer.

Tax changes

Instant asset write-off now permanent

After years of last-minute extensions, the $20,000 instant asset write-off becomes permanent. Eligible small businesses can claim an immediate deduction for assets up to $20,000 each, rather than depreciating them over several years, which makes planning capital purchases easier. This one is still subject to legislation passing.

Loss carry-back returns

If your company makes a loss in FY26, loss carry-back lets you offset it against profits from up to 2 years earlier and claim back the tax you already paid, instead of carrying the loss forward to wait for a future profit. It applies to companies with turnover under $1 billion, covers revenue losses only, and is capped by your franking account balance. Also still subject to legislation.

$1,000 instant deduction (from FY27)

From 1 July 2026, individuals can claim up to $1,000 in work-related expenses without receipts, up from $300. The timing is the catch: this applies to the 2026-27 income year, not the 2025-26 return you’ll lodge over the coming months, which still uses the $300 threshold.

Super contribution caps increase

There’s more room to contribute tax-effectively from 1 July:

• Concessional (before-tax) cap: $30,000 to $32,500
• Non-concessional (after-tax) cap: $120,000 to $130,000
• General transfer balance cap: $2 million to $2.1 million

The bring-forward amounts increase in line. If you’re planning contributions or approaching retirement, factor the higher caps into your strategy for the year ahead.

Compliance and other changes

AML/CTF tranche 2

The second tranche of anti-money laundering and counter-terrorism financing (AML/CTF) reforms starts on 1 July, bringing accountants, lawyers, conveyancers and real estate agents into the regime. LINK is subject to this and already compliant, so expect various checks when we take on new clients and for certain existing-client tasks. If you operate in an affected industry, make sure you’re compliant too and rely on AUSTRAC guidance for your obligations.

SMS sender ID verification

From 1 July, business texts sent from unregistered branded sender IDs will show as “Unverified” and may be grouped in with scam messages. If your business sends branded SMS, register your sender ID with the Australian Communications and Media Authority (ACMA) as soon as possible, since registrations lodged now may not be approved before 1 July.

Fuel excise cut extended

The temporary fuel excise relief continues from 1 July to 2 August 2026, but at 16 cents per litre rather than the earlier 32 cents, with the Heavy Vehicle Road User Charge dropping by the same amount. Fuel tax credit rates adjust in line, so if you claim them your calculations update automatically.

The LINK Advisors team can help you stay compliant and make confident business decisions. If any of these changes affect you, get in touch and we’ll walk you through what to do.