What Changed on 1 July 2026: Money Changes

The new financial year brought a long list of changes for Australian households on 1 July 2026. Some put money in your pocket automatically, some need you to act, and a few only matter if they apply to you. Here's a plain-English rundown, with what each one means in dollars.

See your new take-home pay

The changes at a glance

Change	What it means	From
Income tax cut	Rate on $18,201–$45,000 falls from 16% to 15%	1 July 2026
Minimum wage	$26.44 an hour, $1,004.90 a week	1 July 2026
Paid Parental Leave	26 weeks for babies born or adopted from 1 July 2026	1 July 2026
Super caps	Concessional cap $32,500; non-concessional $130,000	1 July 2026
Payday Super	Employers must pay super with each payday	1 July 2026
HECS-HELP	Repayments start above $69,528	1 July 2026
Electricity default offers	Most DMO regions and Victoria down; SA up slightly	1 July 2026

1. A smaller tax cut for everyone who pays tax

The tax rate on income between $18,201 and $45,000 dropped from 16% to 15%. Anyone earning $45,000 or more saves the maximum of $268 a year, or about $5 a week. The other brackets are unchanged:

Taxable income	Tax rate 2026–27
$0 – $18,200	Nil
$18,201 – $45,000	15%
$45,001 – $135,000	30%
$135,001 – $190,000	37%
Over $190,000	45%

The same rate is legislated to fall again, to 14%, from 1 July 2027. Your employer's withholding tables were updated from 1 July 2026, so the saving should already be in your pay.

Coming in your next tax return, not this one: a new standard deduction of up to $1,000 for work-related expenses, with no receipts needed, applies from the 2026–27 income year. The ATO says you can't claim it in your 2025–26 return.

2. Minimum and award wages up

The Fair Work Commission's annual wage review lifted the National Minimum Wage to $26.44 an hour or $1,004.90 a week from 1 July 2026. Award minimum rates also rose, from the first full pay period starting on or after 1 July 2026. Check your award rate with the Fair Work Ombudsman's pay calculator if you're paid at or near the minimum.

3. Paid Parental Leave reaches 26 weeks

For babies born or adopted on or after 1 July 2026, the government's Paid Parental Leave scheme pays up to 26 weeks (130 days). In a couple, four weeks are reserved for each parent on a use-it-or-lose-it basis. The rate rose to $200.94 a day ($1,004.70 a week), up to $26,122.20 for the full 26 weeks. Super (at 12%) is also paid on Paid Parental Leave for babies born or adopted from 1 July 2025, by the ATO after the end of the financial year.

4. Super: higher caps, Payday Super and a new tax on big balances

The concessional (before-tax) cap rose to $32,500 and the non-concessional cap to $130,000. The super guarantee stays at 12%.
Payday Super started: employers now have to pay super at the same time as wages, with contributions reaching your fund within 7 business days of payday (20 business days for a new employee's first contribution). That replaces quarterly payments and makes missing super easier to spot.
Division 296 is now law. From 1 July 2026, earnings on the part of a total super balance above $3 million are taxed an extra 15%, and above $10 million an extra 10%.

5. HECS-HELP thresholds and indexation

For 2026–27, compulsory repayments start once your repayment income is over $69,528 (up from $67,000), and only on the income above that threshold: 15c per dollar up to $129,717, then $9,028 plus 17c per dollar up to $186,050, then 10% of total income. On 1 June 2026, debts were indexed by 2.8%, the lowest rate since 2021.

6. Electricity default prices

The Australian Energy Regulator's Default Market Offer (DMO) for 2026–27 cut the reference price in NSW (by 3.4% to 5%) and south-east Queensland (7.2%), while South Australia's rose 1.4%. In Victoria, the Essential Services Commission cut the Victorian Default Offer by about 5% to $1,591 a year for a typical household. A new Solar Sharer offer also gives customers in DMO regions three hours of free power in the middle of the day on an opt-in plan. Default offers are a ceiling, not a target: you can usually find something cheaper.

7. Property changes around 1 July

ACT: eligible home buyers pay no stamp duty from 1 July 2026, with no income test or price cap.
NSW: transfer duty brackets were indexed, slightly lowering duty at most prices.
Tasmania: the temporary first home buyer exemption for established homes ended for settlements after 30 June 2026.
WA: first home buyer thresholds rose earlier, on 7 May 2026, to no duty up to $600,000.

What you should do now

Check your first payslip after 1 July: tax, super and (if relevant) your award rate should all reflect the new figures.
Look at your super fund's transactions. Under Payday Super, contributions should arrive within days of each pay.
If you're expecting a baby, check your Paid Parental Leave entitlement with Services Australia.
Compare your energy plan against the new default offer.
If you have room under the higher caps, consider salary sacrifice or a personal deductible contribution.

Frequently asked questions

How much is the 1 July 2026 tax cut worth?

Up to $268 a year, for anyone with taxable income of $45,000 or more. People earning between $18,201 and $45,000 save 1% of their income above $18,200.

What is the minimum wage from 1 July 2026?

$26.44 an hour or $1,004.90 for a 38-hour week, before tax. Award minimum rates also increased from the first full pay period on or after 1 July 2026.

Can I claim the $1,000 instant deduction in my 2026 tax return?

No. The standard deduction first applies to the 2026–27 income year, so the first return you can claim it in is the one you lodge after 30 June 2027.

Sources

More guides

Last reviewed October 2026. This guide is general information only. It isn't financial, tax, credit or legal advice and doesn't consider your circumstances. Rules change, so check the official sources below or speak to a licensed professional before you make a decision.

What changed on 1 July 2026: tax, wages, super, HECS and energy

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