What’s changing for Victorian businesses from 1 July 2026

While some changes present opportunities, others introduce new obligations that require early preparation.

Below is a practical overview of the key changes and what they mean for your business.

Key changes employers must know

Payday super

The most significant change for employers is the introduction of Payday super, which fundamentally changes how superannuation is paid.

From 1 July 2026, employers must:

• Pay super at the same time as wages, rather than quarterly
• Ensure contributions reach employee funds within 7 business days of payday

This represents a major operational shift. Superannuation will no longer be a quarterly liability but an ongoing, real-time payroll obligation.

Minimum wage increase

The Fair Work Commission has announced its Annual Wage Review decision, which will apply from the first full pay period on or after 1 July 2026.

Key changes include:

• National Minimum Wage increasing to $1,004.90 per week ($26.44 per hour)
• Modern award minimum wages increasing by 4.75%

Expanded Paid Parental Leave

From 1 July 2026, the government-funded Paid Parental Leave (PPL) scheme expands to 26 weeks.

Although funded by the government, employers will need to manage longer periods of employee leave.

Business should update parental leave policies, plan workforce coverage during leave periods, and support employees returning to work with flexibility.

Ongoing instant asset write-off 

The Federal Budget has announced plans to make the $20,000 instant asset write-off permanent for eligible small businesses (turnover under $10 million), from 1 July 2026.

This would allow businesses to immediately deduct the full cost of eligible assets below the threshold.

Other developments

• Business name and company fees: These will increase from 1 July. View ASIC for full list of costs.
• Changes to personal income tax: From 1 July, the tax rate for income between $18,201 and $45,000 reduces to 15%, as part of staged tax reforms.
• Superannuation settings remain stable: The Superannuation Guarantee (SG) rate remains at 12%. However, the introduction of Payday Super changes how super is calculated and delivered, including the use of a broader definition of “qualifying earnings”.
• Increased compliance and enforcement: Regulatory scrutiny continues to increase across payroll, superannuation and business compliance. This includes greater ATO visibility and monitoring of real-time payroll and super payments, and expanded AML/CTF (anti-money laundering) obligations for some professional services sectors.
• SMS rules: New rules mean texts sent with an organisation’s name at the top of a message (known as a branded sender ID) will need to have the sender ID registered. Businesses using SMS must register their sender IDs to ensure messages are delivered. This measure aims to reduce scams and improve trust in business messaging.
• Other industry-specific changes: This includes seafood labelling laws. From Wednesday 1 July 2026, businesses will need to tell customers if the seafood served is Australian, imported or both.