1 July 2026 brought the biggest single-day reshuffle of Australian pay, tax and benefits in years: the minimum wage jumped 6%, payday super began, the tax rate dropped to 15%, HECS thresholds rose, and Centrelink payments were indexed. Here's every change in one place.
Key facts
| What changed | Before | Now |
|---|---|---|
| Minimum wage | $24.95/hr | $26.44/hr (+6%) |
| Modern award rates | — | +4.75% |
| Payday super | — | Super paid within 7 business days of payday |
| Income tax (16% bracket) | 16% | 15% |
| HECS repayment threshold | $67,000 | $69,528 |
Pay: minimum wage and award rates rise
The national minimum wage rose 6% to $26.44 an hour ($1,004.90 for a 38-hour week), while modern award minimum rates rose a separate 4.75%, reaching award-reliant workers, about 23% of employees according to the ABS (May 2025). The rise applies from the first full pay period on or after 1 July 2026. Read the full breakdown in minimum wage rise explained, then check your own pay with the take-home pay calculator.
Super: payday super goes live
Employers must now pay super guarantee into your fund within 7 business days of each payday, instead of waiting until the end of the quarter. See payday super starts for what changed for employers and employees. The super guarantee rate itself stays at 12%, now calculated on qualifying earnings; use the superannuation calculator to project your balance. Higher balances are also affected: Division 296 tax, an extra 15% on earnings from balances above $3 million, applies from the same date.
Tax: the 16% rate drops to 15%
The tax rate on income between $18,201 and $45,000 fell from 16% to 15%, worth up to $268 a year, applied automatically through PAYG withholding. Full detail in tax cut from 1 July 2026; check your exact saving with the income tax calculator. The $1,000 instant work-related deduction also starts applying from this date, though it's first claimed on the return lodged from July 2027. See the $1,000 instant deduction explainer for the detail.
HECS: repayment threshold and indexation both moved
The compulsory repayment threshold for 2026-27 rose to $69,528, and HECS balances were indexed 2.8% back on 1 June. Under the marginal repayment system, you now pay 15c for every dollar of repayment income above that threshold, rather than a flat percentage of your total income. See HECS threshold rises to $69,528 for the full repayment bands, and run your own numbers through the HECS-HELP calculator.
Centrelink: family payments indexed
Family Tax Benefit rose from 1 July 2026 under the family assistance indexation cycle, which runs on the financial year rather than the calendar dates used for pensions. Part A rose to $235.48 a fortnight per child under 13, and the Part B primary earner income limit lifted to $124,327. Pension-type payments like Age Pension, JobSeeker and Carer Payment instead index every 20 March and 20 September. The Age Pension's last rise was 20 March 2026. See Centrelink changes from July 2026 for the updated family payment rates and thresholds, and use the Centrelink income test guide to check how your earnings affect your payment.
Putting it all together
No single change on 1 July 2026 is dramatic on its own, but stacked together they touch almost every working Australian: a pay rise if you're on the minimum wage or an award, a small tax cut whatever you earn, faster super contributions, a higher HECS threshold if you have a study loan, and adjusted Centrelink rates if you receive a payment. Most flow through automatically via payroll, your super fund or Services Australia. The main thing worth doing is checking your own payslip and notice of assessment reflect the new rates.
What this means for your pay
Most of these changes apply automatically (through payroll, your super fund, or Centrelink), so there's usually nothing to apply for. The exception is checking your own numbers: run your salary through the take-home pay calculator for your new after-tax pay, or the income tax calculator to see the tax cut, HECS repayment and Medicare levy together under FY2026-27 settings.