1 JULY UPDATES - New Pay Rates / Payday Super / Standard Tax Deductions for 2027

New Pay Rates – Minimum Wage Increase

The National Minimum Wage and minimum award wages are increasing from 1 July 2026.  This increase will apply from the first full pay period starting on or after this date.

You will need calculate and update the new rates for your employees.  Updated wage information will be available on the Fair Work Ombudsman website from 1 July 2026.

Under the Fair Work Act 2009, it is essential to stay up to date with legislative changes to ensure full compliance.  Failure to apply the correct rates may result in costly back payments and penalties. 

Incorrectly meeting wage obligations, whether intentional or accidental, is considered wage theft, which may expose you to further investigation and enforcement action.

Payday Super – Are you Ready?

Payday Super officially commences on 1 July 2026.  It’s essential to ensure that your digital providers for payroll and clearing house can support both Single Touch Payroll (STP) and new payday superannuation reporting requirements. 

If your current payroll platforms do not meet the required software capabilities, this must be addressed as soon as possible to ensure compliance from 1 July 2026.

ATO Standard Tax Deduction Announcement: Available next year - 2027

The proposed $1,000 standard deduction is an optional flat deduction that taxpayers may choose to claim instead of itemising their actual work?related expenses. Taxpayers can still choose to claim their actual expenses using receipts if this provides a better outcome.

We strongly recommend that you continue keeping all receipts, as this ensures you can choose the option that results in the greatest tax benefit. For many eligible taxpayers, actual work?related expenses typically exceed $1,000, meaning itemising may still provide a larger refund.

Please remember: the $1,000 is not an amount you will receive as a refund or payment. It is a tax deduction, which reduces your taxable income rather than providing a direct cash benefit.