Changes to Businesses and Individuals Coming in FY 2027

The arrival of the new financial year signals a period of significant regulatory evolution across Australia. Effective 1 July 2026, a wave of legislative updates will impact both businesses and individual nationwide.

This blog article details the critical changes every employer and taxpayer must prepare for in the 2026–27 financial period.

📅 July 2026 – Fair Work Annual Pay Increase

Millions of Australian workers will see a boost in their pay following the Fair Work Commission’s annual wage review.

Effective from the first full pay period on or after 1 July 2026, minimum wages officially increase by:

• 5.97% applicable to the national minimum wage pay rate, setting the minimum wage pay rate to $26.44 per hour (or $1,004.90 per week for a standard 38-hour work week); and
• 4.75% applied to the minimum Award rates.

The Australian Government announced that this latest increase is set to help roughly 2.8 million Australians deal with ongoing cost-of-living pressures. For employers, this mandatory pay adjustment means reviewing their employee’s pay rates to maintain legal compliance and prevent inadvertent wage theft.

📅 July 2026 – Changes to Superannuation

One of the most significant changes impacting both employers and employees is the introduction of “payday super.”

Starting 1 July 2026, Australian employers are legally required to pay their employees’ superannuation contributions at the same time they pay their wages, instead of quarterly.

This reform fundamentally shifts how retirement savings are managed:

• For Employees: Retirement balances will grow faster due to frequent compounding returns, while making it much simpler to cross-reference payslips against super fund deposits.
• For Businesses: While this eliminates massive quarterly liabilities, the introduction of frequent payment cycles may have a severe impact on cash flow for many businesses. This is especially challenging for companies operating on monthly customer billing cycles, where cash outflows for weekly or fortnightly super will no longer align with incoming revenue.

Super on payday impacts roughly 19 million super accounts nationwide, aiming to significantly reduce delayed or unpaid superannuation.

Alongside the shift to payday super, Australians can also contribute more to superannuation at the concessional tax rate, as the Concessional Super Contribution is also set to increase to $32,500 per year, while the after-tax (non-concessional) limit has climbed to $130,000.

These increased caps provide a valuable opportunity for individuals to maximise their super strategies in the new financial year.

📅 July 2026 – Adjustments to Individual Tax Rates

Personal income tax rates are also undergoing a phased reduction.

Starting 1 July 2026, the marginal tax rate for the lowest bracket applying to income earned between $18,201 and $45,000 drops by 1%, falling from 16% to 15%.

This initial cut is set to provide savings of up $268 per year for all individual taxpayers. And a second round of relief is already locked in. From 1 July 2027, the government will slash this same bracket by another 1%, bringing the final marginal tax rate down to 14% and doubling annual maximum savings to $536.

📅 July 2026 – Changes to Paid Parental Leave

Families welcoming or adopting a child from 1 July 2026 can now access an enhanced Pay Parental Leave scheme scaled up to 26 weeks of coverage.

To promote a fairer distribution of early childhood responsibilities, partner leave allocations have concurrently increased, with up to 20 days reserved for the non-primary caregiver.

The 26-week increase period is the final stage of the Parental Leave policy extension and is set to deliver a much-needed lifestyle flexibility for modern households, making it easier to share early childcare responsibilities while supporting a smooth return to the workforce.

📅 July 2026 – Instant Asset Write-off to become permanent

From 1 July 2026, the $20,000 instant asset write-off becomes permanent under Australian tax law. Small businesses with an aggregated annual turnover of less than $10 million can immediately deduct the full cost of eligible assets priced under $20,000.

📅 July 2026 – Increase of the Electricity Minimum Disconnection Amount

Effective 1 July 2026, the minimum debt threshold required for energy retailers to disconnect a customer for non-payment increases from $300 to $500. This update strengthens consumer protections under the National Energy Customer Framework across the ACT, NSW, Queensland, South Australia, and Tasmania. For further details, visit the Australian Energy Regulator website.

📅 July 2026 – New SMS Sender ID Registration and Anti-Scam Protections

Effective 1 July 2026, the Australian Communications and Media Authority (ACMA) has implemented a mandatory SMS Sender ID Register to combat impersonation scams.

Under these new rules, messages sent using unregistered sender IDs will be labelled “Unverified” and separated from verified communications to make it harder for scammers to imitate trusted organisations. For more details, visit the ACMA website.

📅 July 2026 – Mandatory Country of Origin Labelling for Seafood

Effective 1 July 2026, hospitality businesses serving seafood for immediate consumption must comply with mandatory country of origin labelling.

Under an information standard added to Australian Consumer Law, venues like restaurants, cafés, pubs, takeaways, and food trucks must use the “AIM” model to explicitly state if their seafood is Australian (A), Imported (I), or Mixed Origin (M).

📅 July 2026 – Expansion of Anti-Money Laundering (AML/CTF) Laws

Australia’s strict anti-money laundering and counter-terrorism financing regulations are expanding to cover “Tranche 2” entities.

This includes real estate agents, lawyers, accountants, and conveyancers must now implement formal customer identity checks and report suspicious transactions

📅 October 2026 – Ban of Card Fees Surcharges

Effective 1 October 2026, the Reserve Bank of Australia (RBA) has banned businesses from adding a separate surcharge to transactions processed on major card networks. This mandatory “no-surcharge” rule applies across EFTPOS, Mastercard, Visa, and American Express, covering debit, credit, and prepaid transactions made in-store, online, or via mobile digital wallets.

This structural change was introduced to maximise pricing transparency for individuals, ensuring that checkout totals explicitly match advertised shelf prices without hidden card fees.

For more information refer to the blog article posted on our website.

📅 October 2026 – Funding Resets for Select NDIS Supports

Funding allocations within individual National Disability Insurance Scheme (NDIS) plans will be reset for specific categories, including improved daily living skills and community participation supports. These changes take effect gradually as participants’ plans are created, reassessed, or renewed. For more information, refer to the NDIS Hub.

📅 June 2027 – Division 296: New Super Tax on Balances Over $3 Million

Division 296 tax reduces tax concessions for individuals with high-balance superannuation accounts. It formally commenced on 1 July 2026, with the 2026–27 financial year serving as the first historical period used to calculate liabilities.

The Australian Taxation Office (ATO) calculates this personal assessment on a tiered scale according to an individual’s Total Superannuation Balance (TSB):

• Between $3 million and $10 million: attract an additional 15% tax on the proportion of realised earnings matching the excess balance, bringing the effective tax rate on those earnings to 30%;
• Exceeding $10 million: attract an additional 25% tax on the proportion of realised earnings matching that upper tier, resulting in an effective tax rate of 40%.

Conclusion

The comprehensive regulatory updates taking effect throughout the 2026–27 financial period represent a major shift for both individual taxpayers and the businesses.

From the immediate implementation of real-time payday super and mandatory country of origin seafood labelling, to upcoming structural milestones like the October card surcharging ban, compliance demands are increasing.

For individuals, these changes deliver clear pricing transparency and tax relief, while businesses must immediately review their cash flow models and operational workflows to maintain compliance under the updated frameworks.

Disclaimer

This blog and attached resources are of general nature, designed for informational and educational purposes only. They should not be construed as professional financial advice for your individual business. Should you need such advice, consult a licensed financial or tax advisor.