Payroll in 2026-27: Every Change Australian Employers Need to Know
The 2026–27 financial year is the biggest shake-up to Australian payroll in decades. Payday super is now live, the minimum wage has jumped, tax tables have changed, and the penalties for getting it wrong have never been steeper. Here's every change that affects you as an employer, in one place — bookmark it, because we'll refresh this page each July.
The 2026–27 changes at a glance
| Change | What it means for you | From |
|---|---|---|
| Payday super | Super must reach each employee's fund within 7 business days of payday | 1 July 2026 |
| Super guarantee rate | Stays at 12% — no further legislated increases | Ongoing |
| ATO clearing house closed | The free Small Business Superannuation Clearing House has shut down | 1 July 2026 |
| Minimum wage | National minimum wage up ~6% to $26.44/hour; award rates up 4.75% | 1 July 2026 |
| Tax cut | 16% bracket drops to 15% — new PAYG withholding tables apply | 1 July 2026 |
| STP reporting | Qualifying earnings reporting begins (transitional in 2026–27, mandatory from 1 July 2027) | 1 July 2026 |
| Penalty unit | Up from $330 to $364 — every Commonwealth fine just got bigger | 1 July 2026 |
| Super caps | Concessional cap now $32,500; maximum contribution base $270,830, assessed annually | 1 July 2026 |
Payday super is live — the biggest change in decades
For over 30 years, employers paid super quarterly. That's over. From 1 July 2026, super guarantee contributions must be received by your employee's super fund within 7 business days of payday — and "received" is the operative word. The clock starts the day you pay wages, and it stops when the money lands in the fund with everything needed to allocate it to the member's account. Payment sitting in a clearing house doesn't count.
Two exceptions worth knowing:
- New employees: the first contribution for a new starter gets 20 business days, giving you time to sort out their fund details.
- Small, irregular payments: out-of-cycle payments like commissions and bonuses are generally tied to your next regular payday cycle.
If you pay weekly, you're now making 52 super payments a year instead of 4. The practical fix is payroll software that files super automatically with every pay run — if yours doesn't, it's time to look at our accounting software comparison.
What late payment costs you now
The super guarantee charge has been rebuilt around payday super, and it bites harder:
- Daily compounding interest on the shortfall from the day it was due, at the ATO's general interest charge rate (which changes quarterly).
- An administrative uplift of up to 60% of the shortfall, scaled to your compliance history.
- Further penalties of up to 50% of the amount owing if you still haven't paid after the ATO issues an assessment.
One genuine improvement: the core charge (shortfall, notional earnings and the uplift) is now tax-deductible, which the old SGC never was. Penalties and interest on unpaid assessments remain non-deductible. The ATO has also flagged a lighter touch for employers who genuinely try to pay on time and fix errors quickly — but with every payday now reported through STP and funds reporting contributions received, they can see late payments almost in real time. The days of quietly catching up at quarter's end are gone.
The ATO's free clearing house is gone
The Small Business Superannuation Clearing House closed on 1 July 2026 — it couldn't handle payday-frequency payments. If you were using it, your alternatives are your payroll software's built-in super filing (Xero, MYOB, QuickBooks and most others include it), your default super fund's employer portal, or a commercial clearing house. If you're not sure which way to jump, this is exactly the kind of thing a good adviser sorts out in an hour — see our guide to hiring a bookkeeper or BAS agent.
The 2026 minimum wage decision
The Fair Work Commission's 2026 Annual Wage Review split the increase for the first time in years:
| Rate | Increase | New rate from 1 July 2026 |
|---|---|---|
| National minimum wage | 6% | $1,004.90/week or $26.44/hour |
| Modern award minimum rates | 4.75% | Varies by award and classification |
The national minimum wage only applies to employees no award or agreement covers — most small business staff are on awards, so 4.75% is the number that matters for most of you. The increase applies from the first full pay period starting on or after 1 July 2026. If you haven't updated your pay rates yet, do it today and back-pay the difference.
Two extra things to check:
- Gender undervaluation increases. The Commission is phasing in large additional rises for several female-dominated awards. Pharmacists are partway through a 14.1% increase phased over three years, and the Children's Services Award got a new classification structure with increases stepping up each year through to 2028–29. If you're in childcare, pharmacy or health support, your rates moved more than 4.75% — check the Fair Work pay tools directly.
- Salaried staff. Annual salaries must still clear the award minimum for all hours actually worked. A salary that comfortably covered the award two years ago may not any more.
Wage theft is a crime — and the fines just went up
Since 1 January 2025, intentionally underpaying wages or entitlements is a criminal offence under the Fair Work Act. The maximum penalties, using the new $364 penalty unit (as at August 2026):
- Individuals: up to 10 years in prison, and fines up to the greater of 3 times the underpayment or $1.82 million (5,000 penalty units).
- Companies: fines up to the greater of 3 times the underpayment or $9.1 million (25,000 penalty units).
The offence requires intent — honest mistakes aren't criminal, though they can still attract hefty civil penalties. Small businesses get an extra layer of protection: comply with the Voluntary Small Business Wage Compliance Code (checking award coverage, paying correct rates, fixing errors promptly) and the Fair Work Ombudsman can't refer you for criminal prosecution over an underpayment. Download it from fairwork.gov.au, read it once, and keep evidence that you follow it.
Remember the definition is broad: wages, super, penalty rates, overtime, allowances, leave loading — deliberately shorting any of them counts. And with payday super now reported in real time, unpaid super is far more visible than it used to be.
Tax cuts change your withholding
From 1 July 2026, the tax rate on income between $18,201 and $45,000 dropped from 16% to 15%. That means new PAYG withholding tables apply from the first pay period on or after 1 July 2026. Software users got this automatically with an update; if you're doing manual payroll from the old tables, you're over-withholding right now — grab the current tables from ato.gov.au.
The cut is worth up to $268 a year per employee, and the same bracket drops again to 14% from 1 July 2027 — so expect another table update next July. No other thresholds or rates changed for 2026–27.
STP: qualifying earnings are coming
Payday super changes what you report through Single Touch Payroll. Super is now calculated on qualifying earnings (QE) rather than ordinary time earnings, and STP reports are being expanded to include year-to-date qualifying earnings and super liability each payday.
The good news: 2026–27 is a transition year. The ATO will accept STP reports without QE fields until 1 July 2027 — after that, reports missing them will be rejected. Your software provider is doing the heavy lifting here; your job is to keep the software updated and check pay categories are mapped correctly. New to STP or need a refresher? Our Single Touch Payroll guide covers the whole system.
STP finalisation is unchanged: 14 July each year for most employers, 30 September for closely held payees.
Key dates for 2026–27
| Date | What's due |
|---|---|
| 1 July 2026 | Payday super begins; new wage rates; new tax tables; $364 penalty unit |
| 14 July 2026 | STP finalisation for 2025–26 (30 Sept for closely held payees) |
| 28 July 2026 | Final quarterly super payment — for the April–June 2026 quarter under the old rules |
| Every payday | Super due in employee funds within 7 business days |
| 21st of each month | Monthly BAS/IAS lodgement and payment (if monthly) |
| 28 Oct / 28 Feb / 28 Apr / 28 Jul | Quarterly BAS deadlines — full calendar in our BAS due dates guide |
| 1 July 2027 | Tax rate drops to 14%; QE reporting becomes mandatory in STP |
The shift from 4 super payments to potentially 52 changes your cash flow rhythm — super now leaves your account every pay run instead of accumulating for a quarter. If margins are tight, factor it into your forecasting; our cash flow management guide shows you how.
Key takeaways
- Payday super is live: contributions must reach each employee's fund within 7 business days of payday, or you'll face daily interest and an uplift of up to 60% of the shortfall.
- The ATO's free clearing house has closed — move to payroll software with built-in super filing or a fund's employer portal now if you haven't.
- Award minimum rates rose 4.75% and the national minimum wage is $26.44/hour from 1 July 2026 — check your rates and back-pay any gap immediately.
- Intentional underpayment is a criminal offence: up to 10 years' jail and fines up to $9.1 million for companies (as at August 2026). Follow the small business compliance Code for protection.
- New tax tables apply from 1 July 2026 (16% bracket down to 15%) — manual payroll users need the updated tables from the ATO.
- Diarise 14 July for STP finalisation and 28 July 2026 for your final quarterly super payment under the old rules.
Where to get help
- ATO — Payday Super — official rules, deadlines and transition guidance
- Fair Work Ombudsman — pay calculators, award rates and the Voluntary Small Business Wage Compliance Code
- Fair Work Commission — annual wage review decisions and award variations
- business.gov.au — plain-English employer obligations checklists
- Your accountant or bookkeeper — payroll is one area where an hour of professional setup pays for itself many times over
General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — confirm current figures with ato.gov.au or your accountant before acting.