FY26 HR & Compliance essentials
The start of a new financial year isn’t just a reset - it’s a critical time for employers to get across legislative updates that affect pay, entitlements, contracts, and compliance.
From increased superannuation to the expanded Right to Disconnect laws, several changes take effect on 1 July 2025, and others introduced in the past year are now fully in play.
To help you stay ahead, here are seven key updates that HR and business leaders need to understand and act on now.
1. Minimum wage lifts by 3.5%
The National Minimum Wage increases to $24.95/hour, with casual employees now entitled to a base of $31.19/hour (including 25% loading). Award wage increases also apply from 1 July 2025.
Action Steps:
Update payroll systems with new award rates.
Review pay for juniors, part-timers, and apprentices.
Let employees know if they’re affected.
2. 12% Super now in force – with a lower cap limit
From 1 July, the Super Guarantee increases to 12%, while the maximum super salary base reduces from $262,500 to $250,000. This means the maximum employer super contribution is now capped at $30,000 per year.
Action Steps:
Review remuneration for high-income earners.
Revisit salary packaging or “plus super” arrangements.
Monitor contributions to avoid breaching the cap through SGC alone.
3. High-income threshold increases to $180,500
The threshold for accessing unfair dismissal under the Fair Work Act increases to $180,500.
Action Steps:
Identify employees nearing this figure.
Reassess employment contracts and protections for senior staff.
Remember: general protections and award entitlements may still apply above this threshold.
4. Paid parental leave now covers 24 weeks
Eligible parents can now access up to 24 weeks (120 days) of government-funded Paid Parental Leave for births or adoptions from 1 July 2025.
Action Steps:
Adjust leave policies and payroll setup.
Update forms and documentation.
Communicate entitlements clearly to staff planning leave.
5. Tax-free redundancy payments get a boost
From 1 July, the tax-free cap for genuine redundancy payments increases to $13,100 + $6,552 per full year of service.
Action Steps:
Update termination calculators.
Review redundancy policies and communication tools.
Double-check tax treatment for long-tenured employees.
6. Right to disconnect applies to small business from 26 August
Already in place for large employers, the Right to Disconnect becomes law for small businesses (less than 15 employees) in August 2025.
Action Steps:
Develop or update a policy on after-hours contact.
Provide training to managers on respectful communication expectations.
Check your rostering and on-call systems.
7. Same job, same pay Is fully enforceable
While the law came into effect in late 2024, many businesses will experience its operational impact across FY26. Labour-hire workers must be paid the same as directly employed staff doing comparable work.
Action Steps:
Review any use of labour-hire or contract labour.
Compare agency rates to your internal pay structures.
Collaborate with procurement to ensure compliance and avoid financial surprises.
Ready for FY26?
With so many changes taking effect, now’s the time to get your house in order - from contracts and policies to payroll and communication.
Need help with HR compliance or process updates?
Please contact me on 0411 563 731 or julia@juliabucci.com.au
