If you’ve got staff on your books, you’ve probably noticed something different in your first pay run of the new financial year. From 1 July, the minimum wage and award rates went up – and this year’s increase is bigger than usual.

The Fair Work Commission’s 4.75% increase to the National Minimum Wage and award rates is now in effect, applying from the first full pay period on or after 1 July 2026. That’s a bigger jump than last year’s 3.5%, and it’s affecting a lot of small businesses – especially those in retail, hospitality, and other award-reliant industries.

Here’s what’s changed, and what’s worth double-checking now that it’s live.

The numbers have changed

The National Minimum Wage has increased from $948 a week to $1,004.90 a week — or from $24.95 to $26.44 an hour. If any of your staff are paid at or near the minimum wage, this isn’t optional — their pay rate should already reflect the new amount from your first full pay period on or after 1 July, even if that fell mid-cycle for your business.

It’s not just minimum wage employees affected

This increase also applies to modern award rates across the board, not just the National Minimum Wage. Even if none of your staff are technically on “minimum wage,” many are paid under an award – and those rates have gone up too. It’s worth checking which award (if any) covers your team, because the changes flow through to a much bigger group of employees than people often assume.

If your payroll didn’t update itself, it’s worth checking now

These changes don’t apply automatically – someone needs to action them in payroll software and update employment contracts where relevant. If this slipped through the cracks in your first July pay run, the sooner it’s picked up, the easier it is to fix. Underpayments (even accidental ones) can mean back pay and unnecessary admin the longer they go unnoticed.

Worth a quick check?

This is a once-a-year change, and it happens every July – so if you haven’t already double-checked your payroll against the new rates, now’s a good time.

Confirm who’s affected, check the new rates have been applied correctly, and make sure your payroll system reflects the update from the right pay period.

If you’d like a second set of eyes on your payroll setup, we’re here to help.

rebecca@kaleidoscopeaccounting.com.au | 0417 859 700