What’s Changing from 1 July 2026? Key Regulatory Updates Businesses Should Know 

The new financial year is set to bring a range of important legislative and regulatory changes that may impact individuals, employers, businesses and professional advisers across Australia. 

While some reforms are still progressing through consultation and final legislation, there are several major changes businesses should already be preparing for ahead of 1 July 2026. 

Here’s a high-level overview of the key updates to keep on your radar. 

Payday Super 

One of the biggest changes for employers is the move to Payday Super. 

Instead of paying superannuation quarterly, employers must now pay super guarantee contributions to employees’ super funds at the same time they pay Qualifying Earnings (QE), on payday, with the super fund required to receive the payment within seven business days.

Super guarantee is calculated as 12% of an employee’s Qualifying Earnings (QE); a new term that combines Ordinary Time Earnings (OTE) and other payments, such as salary sacrifice contributions. 

There are some exceptions to the seven day deadline, such as for new employees.  

The government aims to reduce unpaid super and improve transparency for employees through this reform, but businesses may also need to review:

• Payroll systems and software integrations.
• Cash flow management for more frequent super payments.
• Payroll reporting processes. 
• Super clearing house arrangements. 

For many businesses, this will be a significant operational shift. 

You don’t need to wait until 1 July 2026. You can, and should, start now. In line with ATO guidance, we recommend that businesses start paying super on payday now so they can identify issues and refine processes before penalties take effect.

Stricter Penalties for Late Super Payments 

Alongside Payday Super, the Government is also tightening the rules around late super payments, with a revamped Super Guarantee Charge (SGC) regime set to commence from 1 July 2026.  

Late super payments will attract faster, stricter and more actively enforced penalties. With less time to make contributions, employers must be on their A-Game to ensure they make timely payments to avoid costly interest and penalties.  

Division 296 Super Tax 

The government has officially passed Division 296, which applies to individuals with superannuation balances above $3 million.

Under the reforms, earnings attributable to balances over the threshold will face an additional 15% tax, effectively increasing the tax rate on that portion of earnings to up to 30%. 

For balances above $10 million, there will be a further 10% tax on earnings above that tier, bringing the effective rate to 40% on that portion. 

With these changes approaching, now may be a good time to review your long-term wealth, retirement and investment strategies to ensure they remain tax efficient.  

AML/CTF ‘Tranche 2’ Reforms 

Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime is expanding significantly under the long-awaited ‘Tranche 2’ reforms. 

AUSTRAC is expected to regulate a broader range of businesses and professional services, including:

• Accountants.
• Lawyers.
• Real estate professionals.
• Trust and company service providers.
• Dealers in high-value goods.

Affected businesses may need to implement new compliance measures such as: 

• Customer due diligence procedures.
• Risk assessments.
• Staff training.
• Ongoing transaction monitoring.
• Suspicious matter reporting.

For many firms, these reforms will introduce entirely new compliance obligations. 

Transfer Balance Cap Increase 

The general Transfer Balance Cap will also increase to $2.1 million from 1 July 2026. 

This may create additional opportunities for retirement planning and pension strategies for individuals approaching or entering retirement. 

Permanent Instant Asset Write-Off 

The $20,000 Instant Asset Write-Off for eligible small businesses is now a permanent feature under the 26-27 Federal Budget.  

The measure helps to give eligible businesses greater certainty when making investment decisions by allowing them to immediately deduct the cost of qualifying assets instead of depreciating them over time.

Thresholds and eligibility rules may still evolve, however the change is expected to support: 

• Business investment.
• Equipment upgrades.
• Technology improvements.  
• Cash flow management. 

For many SMEs, this may provide greater certainty in investment and cash flow planning.  

Increased Compliance Scrutiny 

Alongside these reforms, businesses can expect continued focus from regulators on payroll accuracy, superannuation obligations, financial reporting and sustainability disclosures.  

The ATO continues to strengthen enforcement activity relating to unpaid super, GST liabilities, phoenix activity and director compliance obligations, supported by expanding real-time data matching and reporting capabilities. 

At the same time, ASIC has identified financial reporting, audit quality and climate-related disclosures as key focus areas for the 2026–27 financial year.

You can read our blog post on ASIC’s key focus areas for FY2026-2027 here, or click below:

Minimum Wages Increase from 1 July 2026

Following the Fair Work Commission’s Annual Wage Review, increases to the National Minimum Wage and minimum award wages are set to apply from 1 July 2026. These changes will apply from the first full pay period on or after 1 July 2026.

Read the 2026 Annual Wage Review below:

National Minimum Wage

For employees who aren’t covered by an award or enterprise agreement, the National Minimum Wage will increase from $24.95 to $26.44 per hour, or from $948 to $1004.90 (+25% for casuals).

Minimum award wages:

For employees covered by an award, the Commission has announced a 4.75% increase to minimum wages, provided that:

• The lowest rate in any award that applies to ongoing employment must be at least $1004.90 per week or $26.44 per hour, and
• Any entry-level rate that applies to the first 6 months (or less) of employment must be at least $978.10 per week or $25.74 per hour.

If a 4.75% increase leaves an award rate below this amount, the rate must be lifted to meet the new National Minimum Wage.

What Your Business Can Do

To prepare for 1 July, businesses may need to review:

• Payroll settings.
• Employment contracts.
• Award classifications.
• Salary packages.

Plus, the minimum wage increase may affect employees covered by an enterprise agreement, as pay rates must stay above the relevant award minimums.

Unsure of your award?

Find it using Fair Work Ombudsman’s Pay and Conditions Tool, or referring to their list of awards.

The Bottom Line 

Although some measures are still subject to final legislative confirmation, 1 July 2026 is shaping up to be a major compliance and regulatory milestone for many Australian businesses. 

Now is a good time to start reviewing systems and processes to ensure you’re ready well before the new rules take effect. Businesses that proactively prepare for these reforms now will be better positioned to manage compliance risk, cash flow impacts and operational disruption heading into the new financial year.

What businesses should be doing now. 

Businesses should consider: 

• Reviewing payroll and super systems.
• Assessing AML/CTF exposure.
• Revisiting SMSF and tax strategies.
• Updating compliance frameworks.
• Seeking advice before year-end planning decisions.

Our integrated Wealth, Accounting, Legal and Advisory teams work collaboratively to help clients structure, protect and transition wealth, ensuring investment, tax, business and estate planning strategies remain aligned as circumstances evolve. 

This is general advice only and has not been prepared with your individual situation or needs in mind. For personalised advice, we highly recommend that you seek professional guidance from a qualified adviser.