Every 1 July, a wave of changes hits — new tax rates, wage increases, super rules, and government payments all kick in at once. If you're working, studying, or running a business in Australia, some of these will directly change how much you earn, how much tax you pay, and what you're entitled to. Here's the full list for 2026, in plain language.
1. You're getting a pay rise
The national minimum wage increases to $26.44 per hour — that's $1,004.90 per week for a 38-hour week before tax. The Fair Work Commission approved a 4.75% increase that flows through to all modern award wages. Around 2.8 million workers are affected.
- →The increase applies from the first full pay period starting on or after 1 July 2026 — not from 1 July itself. Check your pay cycle.
- →If you're on a modern award (hospitality, retail, aged care, cleaning, etc.), your rate goes up automatically. Your employer must update it.
- →If you're on an individual contract above the award rate, this doesn't apply — but check that your contract still sits above the new minimum.
Many Nepalis work in hospitality, aged care, and retail — all award-covered industries. If your pay doesn't increase in your first July pay period, raise it with your employer or check the Fair Work Pay Calculator.
2. Your tax rate drops
The marginal tax rate on income between $18,201 and $45,000 drops from 16% to 15%. This means slightly more in your pocket every pay — roughly $268 extra per year if you earn in this bracket. It happens automatically through your employer's PAYG withholding. No action needed.
- →If you earn $45,000 or more, you get the full $268 benefit on the portion of your income in that bracket.
- →If you earn under $18,200, you're already in the tax-free threshold — no change for you.
- →This is the first stage of the tax cuts announced in the 2026 budget. A further cut to 14% comes in July 2027.
3. Payday Super — your super must be paid every pay cycle
This is the biggest change for workers. From 1 July, employers must pay your superannuation within 7 days of each payday — not quarterly as before. This means your super hits your fund every time you get paid, not months later.
- →Previously, employers could pay super quarterly (by the 28th of the month after each quarter). Many workers didn't notice if it was late or missing.
- →Now it's payday + 7 days. If you get paid fortnightly, your super should land within a week of each pay.
- →For new employees, the first super payment must be within 20 business days.
- →This makes it much easier to spot if your employer isn't paying your super — check your fund's app regularly.
Download your super fund's app (AustralianSuper, Hostplus, REST, etc.) and turn on notifications. If a contribution doesn't appear within ~10 days of payday, follow up with your employer immediately. Unpaid super is the most common workplace issue for migrant workers.
4. Paid Parental Leave increases to 26 weeks
The Government-funded Paid Parental Leave scheme increases from 24 weeks (120 days) to 26 weeks (130 days). Partner-reserved days increase from 15 to 20. Single parents can access all 130 days.
- →Paid at the national minimum wage rate — so with the wage increase, each day is worth more from 1 July.
- →You must meet the income test and work test to be eligible. The income test threshold for 2026-27 is around $168,865.
- →Both parents can share the leave flexibly — it doesn't have to be taken consecutively.
- →Important for visa holders: you generally need to be an Australian citizen, permanent resident, or hold an eligible visa to access PPL. Check your eligibility on Services Australia.
5. Energy rebate is gone
There is no federal energy rebate for the 2026-27 financial year. The $150 per quarter electricity bill relief that many households received in 2024-25 and 2025-26 has ended. Your electricity bill will likely be higher from July.
- →In NSW, south-east Queensland, and South Australia, a new Solar Sharer scheme gives households free electricity for 3 hours per day — but you need to be on an eligible plan.
- →If you're in a share house, make sure the electricity account holder knows the rebate has ended — bills will jump.
- →Consider switching energy providers. Comparison sites like Energy Made Easy (government) can show you the cheapest plan in your area.
6. Super tax changes for high balances
If your total super balance is over $3 million, earnings on the amount above $3 million will be taxed at 30% instead of 15%. Balances over $10 million face 40%. This affects very few Nepalis right now, but it's worth knowing as you build wealth long-term.
7. $1,000 instant deduction (new from 2026-27 tax returns)
From the 2026-27 financial year (starting 1 July), every worker can claim a $1,000 deduction on their tax return without keeping receipts. This covers work-related expenses like uniforms, phone use, tools, and professional development. You'll claim it when you lodge your 2026-27 return in late 2027.
This doesn't help your 2025-26 return (due by 31 October 2026). For this year's return, you still need receipts. But from 1 July, stop worrying about small receipts under $1,000 — the automatic deduction will cover them.
Quick checklist — what to do this week
- →Check your first July payslip — make sure the minimum wage increase is applied if you're on an award
- →Download your super fund's app and turn on contribution notifications — payday super starts now
- →Lodge your 2025-26 tax return before 31 October 2026 (or earlier to get your refund sooner)
- →If you have kids in childcare, check your CCS entitlement — the 3-day guarantee is already active
- →Review your electricity plan — the federal rebate is over, so compare providers to avoid bill shock
- →If you're expecting a baby, check the updated Paid Parental Leave entitlements on Services Australia
Need help with your 2025-26 tax return? Read our step-by-step guide written for Nepalis in Australia.
Read the tax return guide →