Minimum Wage Increases - from 1 July 2026

These rates apply from the first full pay period starting on or after 1 July 2026. This means if your weekly pay period starts on Wednesday, the new rates will apply from Wednesday 1 July 2026.

Other Workplace Law Changes

The following workplace law changes have also started:

• new Payday Super rules
• increase to Unpaid Flexible Parental Leave
• increase to Government Funded Parental Leave Pay
• increase to Income Thresholds and the Compensation Cap
• changes to Children’s Services Award Pay Rates
• changes to Pharmacy Award Pay Rates

Information Statements

Employers must give every new employee 1 or more Information Statements when they start work.

All new employees must receive the Fair Work Information Statement, regardless of their employment type.

If the employee is:

• a casual, they must also receive the Casual Employment Information Statement
• employed for a fixed term, they must also receive the Fixed Term Contract Information Statement.

The Casual Employment Information Statement must also be provided at set times throughout an employee’s employment.

Refer to the Fair Work Ombudsman for the latest version of the Information Statements.

Upcoming Changes to Junior Wages

The Fair Work Commission (the Commission) has announced upcoming changes to junior wages under the:

• General Retail Industry Award
• Fast Food Industry Award
• Pharmacy Industry Award

At the moment, employees under the age of 21 covered by these awards are paid a percentage of the adult pay rate for their classification.

These changes mean that employees between the ages of 18 and 20 will be entitled to the adult pay rate for their classification if they’ve been employed by their employer for more than 6 months.

Pay rates for employees aged 18 to 20 won’t change if they’ve been employed for less than 6 months with their employer. There are also no wage changes for employees under the age of 18.

The Commission has indicated that these changes will be introduced gradually, with further hearings to be held about how and when this will happen.

However, the Commission has said that the changes could start from 1 December 2026.

We will provide further updates as they become available.

National Employment Standards (NES) Review

The NES set the minimum entitlements for all employees, including in areas such as leave, hours of work and notice of termination.

The Australian Government is reviewing the NES for the first time since the Fair Work Act was introduced in 2009.

The purpose of the inquiry is to determine whether the NES continues to meet the needs of workers, employers and the broader economy.

The review reflects the extent to which the workforce has shifted. Remote work, skills shortages, an ageing population, and technology-driven change have all altered how people work and how organisations operate.

We will keep you informed.

Non-Compete Clause Ban

- Legislation expected in 2026, to commence in 2027.

In March 2025, the Australian Government announced plans to ban non-compete clauses for workers earning below the Fair Work Act high-income threshold, currently AUD $190,100 per annum for 2026–27.

Legislation is expected to be introduced to parliament in 2026, with the ban potentially taking effect from 2027.

The ban will cover approximately 90% of Australian employees. Non-compete clauses in contracts for workers earning below the threshold will be void and unenforceable.

The ban operates prospectively, it will apply to new contracts entered into after the law commences, though some commentary suggests it may also affect clauses in existing contracts.

Practical Checklist for Employers - from 1 July 2026

• Confirm your payroll software for payday super is working correctly.
• Identify all employees paid at or near modern award minimum rates and confirm their new rates from 1 July 2026.
• Review annualised wage and set-off arrangements to confirm they still satisfy award obligations after the 4.75% increase.
• Ensure your policies reflect 26-week Paid Parental Leave and the increased 4-week second-parent reservation.
• Monitor Junior wage increases if your employees are covered under the Retail, Fast Food or Pharmacy Awards.
• Monitor the NES review.
• Keep up to date on changes for non-compete clauses.