1 July is the day most tax and pay changes take effect in Australia, and 2026 was a busy one. A rate cut, a higher minimum wage, a new way of paying super and a bigger contributions cap all started on the same date. Here is the full list of what changed for the 2026-27 financial year, in plain English, with each change linked to the calculator or guide that covers it in detail.
Key takeaways
- The first marginal tax rate fell from 16% to 15%, worth about $268 a year to anyone earning $45,000 or more.
- The National Minimum Wage rose to $26.44 an hour, or $1,004.90 a week.
- Payday Super means the 12% super guarantee is now paid every payday, not quarterly.
- The concessional (before-tax) super cap rose to $32,500.
- HECS-HELP debts were indexed and the 2026-27 marginal repayment system applies from $69,528.
1. The income tax cut
The first marginal tax rate, the one that applies to income between $18,200 and $45,000, dropped from 16% to 15% on 1 July 2026. Because the saving runs across that whole band, anyone earning $45,000 or more keeps about $268 more a year, and everyone earning above $18,200 keeps something. The tax-free threshold itself did not move; it stays at $18,200. Full worked examples are in our report on the 15% income tax cut, and you can see it in your own numbers with the income tax calculator.
2. The minimum wage rise
The Fair Work Commission lifted the National Minimum Wage to $1,004.90 a week, which is $26.44 an hour or about $52,255 a year for a full-time worker. The new rate applies from the first full pay period starting on or after 1 July 2026, so the exact payday it reaches you depends on your pay cycle. More detail sits in our minimum wage update and the guide to the minimum wage in Australia.
3. Payday Super
From 1 July 2026, employers must pay the 12% super guarantee at the same time as wages, on every payday, rather than once a quarter. The rate you are owed has not changed, but you now receive it far more often. Paying super sooner means it is invested sooner and has longer to earn returns, and it makes underpayment easier to spot. Our Payday Super explainer covers what it means for employees and employers.
4. A bigger super cap
The concessional contributions cap, which covers before-tax contributions such as employer super and salary sacrifice, rose from $30,000 to $32,500 for 2026-27. That is the most you can put in before the standard concessional tax treatment stops and extra tax applies. If you salary sacrifice into super, this is the ceiling to plan against. The details are in our note on the 2026-27 super contribution caps.
5. HECS-HELP changes
Two things happened to study and training loans. Existing HELP debts were indexed for the year, and the 2026-27 marginal repayment system applies, with repayments starting from a $69,528 threshold. Under the marginal system you repay a percentage of only the income above each threshold, rather than a flat percentage of your whole income. Our HECS indexation report explains the indexation, and the HECS-HELP repayment calculator shows what you would repay on your income.
6. The super rate stays at 12%
One thing did not change on 1 July 2026: the super guarantee rate. It reached 12% on 1 July 2025 and stays at 12% for 2026-27. This was the final step of the legislated increases, so there is no further scheduled rise. If you saw a super rate change in your pay last year, that was the 2025 step, not a new one.
What it means for your take-home pay
For most employees the headline is the tax cut: a little more in each pay from the first payday of the new year, and about $268 over the year once you earn $45,000 or more. If you are on the minimum wage or an award, you also get the wage rise from your first full pay period. Payday Super and the higher cap change how and when super reaches you rather than your weekly take-home. The quickest way to see the combined effect on your own salary is to run it through the take-home pay calculator, which is built on the 2026-27 ATO rates.
Frequently asked questions
Sources
All figures verified against the named documents.
- ATO, Tax rates for Australian residents (the 2026-27 15% first marginal rate).
- Fair Work Ombudsman, Minimum wages (the National Minimum Wage of $1,004.90 a week, or $26.44 an hour).
- ATO, Key superannuation rates and thresholds (contributions caps) (the $32,500 concessional cap).
- ATO, Study and training support loans rates and thresholds (the $69,528 first repayment threshold).
Last verified 25 July 2026.
