With 1 July just around the corner, now is a great time for employers to get across the key workplace changes coming into effect in the new financial year.

While some updates will require practical changes to your HR and payroll processes, others present an opportunity to review policies and internal procedures. There is also a significant proposed change to Victorian legislation that employers should be aware of, which may impact employees across the state regarding their ability to work from home.

 

Here’s a summary of the key changes coming into effect from 1 July 2026.

 

1. Minimum wage increases 4.75%

The 2026 Annual Wage Review resulted in increases in the National Minimum Wage and minimum wages in Modern Awards from 1 July 2026.

The National Minimum Wage will increase to $26.44 per hour (or $1,004.90 per week based on a 38 hour work week). Casual rates will attract a 25% loading to this rate.

Minimum wages under all Modern Awards will increase by 4.75%. This also brings increases to penalties and allowances.

 

What you need to do:

 

2. Payday Super

From 1 July 2026, employers are required to remit superannuation guarantee contributions on the same day that payroll is processed, so that super contributions reach an employee’s chosen superfund within 7 days.

There is a grace period for payment of a new employee’s first contribution, which allows for their payment to be made within 20 days of their first pay date.

Non-compliance with the new payment rules will result in penalties through an updated super guarantee charge, which will be payable from the next calendar day and attract interest on a daily basis.

 

What you need to do:

 

3. Superannuation contribution thresholds

As super contributions must now be paid at each pay period, the maximum contribution base for FY27 is an annual amount of $270,830 (previously it was a quarterly figure), which results in a maximum SG contribution of $32,499.60 in this financial year.

The maximum contribution base is the maximum base salary that an employee earns on which their employer is required to pay the SG contribution. The employer is not required to pay super on any earnings over this amount in the financial year.

The general superannuation concessional contribution cap for FY27 is $32,500. This is the maximum amount of super you can contribute (from employer contributions, salary sacrifice contributions and personal contributions for tax deductions) to your fund without incurring extra tax at the marginal rate.

 

What you need to do:

 

4. Expansion of parental leave obligations

The government-funded paid parental leave will increase to 26 weeks (130 days) for any babies born or adopted on or after 1 July 2026. This is final stage of the government’s reform to the paid parental leave scheme and provides an increase of 2 weeks on last year’s provision.

Of the 26 weeks, each parent has at least 4 weeks reserved for them, which will be forfeited if unused.

As part of the reform, the government will also directly pay a 12% super contribution on any government-funded parental leave payment to eligible parents.

 

What you need to do:

 

5. High income threshold to be updated

From 1 July 2026, the high income threshold is an annual base salary of $190,100.

The high income threshold indicates the maximum earnings that an individual can earn to be eligible for unfair dismissal protections from the FWC. Any employee earning at or above the threshold cannot file unfair dismissal claims, but can still apply for general protections claims (exceptions to the access to unfair dismissal claims may be applicable for some Award or enterprise agreement covered employees).

Maximum compensation for an unfair dismissal claim is 6 months’ salary – which, for someone earning the maximum amount before reaching the threshold, is $95,000.

 

What you need to do:

 

6. Redundancy tax-free threshold and ETP caps

The tax-free threshold for redundancy payments in FY27 is $13,598, plus $6,801 for every full year of service.

The cap for employment termination payments (ETP) taxed at the concessional rate is increasing to $270,000. Any amount in excess of this cap is taxed at the top marginal rate.

 

What you need to do:

 

7. Laws restricting NDAs in sexual harassment cases (VIC)

Effective 1 July 2026, the Victorian government has introduced a law that restricts the use of NDAs when dealing with workplace sexual harassment disputes to protect Victorian workers who have experienced workplace sexual harassment. This law prevents employers from covering up cases or silencing victims, and from influencing a worker to sign a NDA.

 

What you need to do:

 

8. The right to work from home (VIC)

On 16 June 2026, the Victorian government presented a new legislation to the Victorian Parliament that provides for the right to work from home under the state’s anti-discrimination laws, within the Equal Opportunity Act 2010 (VIC).

If passed, the new law will provide eligible employees in Victoria with the right to work from home for up to 2 days per week, and be effective as of 1 September 2026 in all public and private businesses in Victoria. However, for small businesses (fewer than 15 employees), this law will come into effect on 1 July 2027 to allow time for any necessary adjustments in their business operations.

This legislation will be applicable for employees who can reasonably perform their roles remotely, including part-time and regular casual employees, but excludes roles that require a physical presence to fulfil their primary function.

This legislation is significant, as this is the first time that working from home would become a statutory right in any Australian state. Moreover, the fact that this law sits within state anti-discrimination legislation, and not under the Fair Work Act, positions the provision as an issue of equal opportunity, with more scrutiny likely to be applied to disputes and enforcement. Any disputes will handled by the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) and the Victorian Civil and Administrative Tribunal (VCAT).

Details are still yet to be finalised through Parliament and further updates will be released prior to commencement.

 

What you need to do:

 

Are you FY27 ready?

As FY27 begins, there are plenty of HR-related changes that businesses need to be on top of.

If you have any questions regarding the changes or are keen to find out how they could impact you or your business, speak with one of the Catalina Consultant team members today.

Companies that fall foul of the new whistleblower laws risk seriously heavy fines. So what should your business and your HR department be doing to comply? Employers who fall on the wrong side of these new whistleblower policies, risk the prospect of being fined up to 10 per cent of their annual turnover. This new whistleblower protection regime came into effect on 1 July 2019.

Which whistleblower protections have changed?

The key changes introduced on 1 July, that affect your HR policies are set out below.

The federal government introduced the changes by amending the Corporations Act 2001 (Cth) and the Taxation Administration Act 1953 (Cth). Together, these Acts regulate almost all companies, including foreign corporations, trading or financial corporations formed within the limits of the Commonwealth, ADIs, NOHCs, super funds, and insurers.

What penalties apply if your business breaches the new whistleblower laws?

Courts can make orders against a company if they fail in their duty of care to protect a whistleblowing employee. The maximum civil penalties for breaching the confidentiality of an eligible whistleblower’s identity or causing or threatening harm include:

Three actions your company needs to do to comply with the new whistleblower laws

To make sure your company stays on the right side of these laws, we believe there are three things your business should be doing.

Implementing a whistleblower policy

From 1 January 2020, some companies will be required to have a whistleblower policy that complies with the new section 1317AI of the Corporations Act 2001 (Cth) or face a $12,600 fine. This can be drawn up by your Human Resources department.

This includes:

To comply with section 1317AI, the policy must contain:

What if you don’t fall under these rules?

Although only certain companies are required to have a whistleblower policy, we strongly recommend all companies create or update their whistleblower policy. We also recommend that your policy includes a scope to conduct investigations internally and externally, and addresses client legal privilege. Your policies should also set out a cohesive process to work through situations where a person subject to disclosure is also authorised to receive it. Finally, as part of these new policies and procedures, we suggest you have a process for determining whether eligible whistleblower consent to be identified during an investigation.

And for listed companies?

ASX-listed companies should also take account of the ASX Corporate Governance Principles and Recommendations, which further recommends that policies:

Assessing your current whistleblower procedures

The new regime requires employers and HR departments to analyse and strategise any existing whistleblower procedures they have in place and to rework or replace them where necessary. Further, to protect whistleblowers from harm, ensure any whistleblowers’ information is stored securely in confidentiality and that what you’re doing complies with privacy laws.

Training all your staff in whistleblowing protections

Given these significant changes, we recommend employers provide two types of tailored HR training. The first training program should be for ‘eligible recipients’. This is eligible to members part of the sector such as senior managers, officers, and anyone else authorised to receive disclosures from whistleblowers, including compliance officers. This training should cover the process set out in the company’s whistleblower policy to respond to disclosures. Pay special attention to the importance of protecting the whistleblower’s right to anonymity during the investigation, unless they consent to being identified. Remember you auditors, actuaries, tax agents and BAS agents are also ‘eligible recipients’. Although it isn’t expected fo you to train these people, we recommend you inform them of their new obligations.

The second training program should be for all staff, including all Human Resource employees. This should set out how the whistleblower regime works and how your whistleblower policy provides a process for disclosing and investigating certain matters. It should also be used to provide details of the protections that will be provided to eligible whistleblowers.

What do you need to do right now?

Employers should respond to the new whistleblower regime now to make sure they comply with new laws and that they’re not exposed to the potential of exceptionally high fines. After all, a fine of 10% of annual turnover is high enough to cripple most companies. Don’t have HR issues, have HR solutions. If you’d like to know more about your own company’s circumstances, introducing these policies into your organisation or what practical steps you can take, get in touch.