Key Changes for Victorian Businesses from 1 July 2026: What You Need to Know
As the new financial year gets underway, a number of significant regulatory, employment and compliance changes have taken effect that may impact how Victorian businesses manage their workforce, payroll obligations and day-to-day operations.
While some of these changes provide opportunities for businesses, others introduce new compliance requirements that should not be overlooked.
Below is a summary of the key developments and the practical steps businesses should be considering.
Payday Super – A Major Payroll Shift
One of the most significant changes for employers is the introduction of Payday Super.
From 1 July 2026, employers are required to pay employees' superannuation contributions at the same time as wages are paid, rather than making quarterly superannuation payments. Contributions must generally reach employees' superannuation funds within seven business days of payday.
For many businesses, this represents a fundamental change in payroll administration and cash flow management. Employers should ensure their payroll systems, processes and accounting practices are capable of meeting these new requirements.
Minimum Wage and Award Increases
The Fair Work Commission's latest Annual Wage Review has resulted in increases to minimum wage rates from the first full pay period on or after 1 July 2026.
Key changes include:
The National Minimum Wage increasing to $1,004.90 per week or $26.44 per hour.
Minimum wage rates under modern awards increasing by 4.75%.
Employers should review remuneration arrangements to ensure they remain compliant with award obligations and minimum employment standards.
Expansion of Paid Parental Leave
The Government-funded Paid Parental Leave Scheme has expanded to 26 weeks from 1 July 2026.
Although the entitlement is funded by the Government, businesses may need to consider the practical implications of extended employee absences, workforce planning, parental leave policies and return-to-work arrangements.
Employers should ensure their policies and employment documentation accurately reflect current entitlements.
Instant Asset Write-Off
The Federal Government has announced that the $20,000 instant asset write-off will become a permanent measure for eligible small businesses with annual turnover under $10 million.
This measure may assist businesses seeking to invest in equipment, technology and other eligible assets by allowing an immediate deduction of qualifying purchases below the threshold.
As always, businesses should seek accounting and tax advice regarding eligibility and implementation.
Increased Compliance and Regulatory Scrutiny
Regulatory oversight continues to increase across several areas of business operations.
Particular focus remains on:
Payroll compliance and wage obligations;
Superannuation reporting and payments;
Real-time ATO monitoring through payroll systems;
Expanded AML/CTF obligations affecting certain professional services sectors.
Businesses should take proactive steps to review internal compliance processes and ensure any deficiencies are addressed before they become regulatory issues.
Other Changes to Be Aware Of
Additional changes commencing from 1 July 2026 include:
Increases to certain ASIC company and business name fees;
Personal income tax changes;
New sender ID registration requirements for businesses using branded SMS communications;
Industry-specific reforms, including new seafood country-of-origin labelling requirements.
What Should Businesses Do Now?
The commencement of a new financial year is an ideal time to review:
Employment contracts and workplace policies;
Payroll and superannuation processes;
Compliance obligations and risk management procedures;
Workforce planning and leave management practices.
Early action can help reduce compliance risks, improve operational efficiency and avoid costly issues down the track.
How We Can Help
Navigating regulatory change can be challenging, particularly where employment, compliance and commercial considerations intersect.
If you would like assistance reviewing your employment arrangements, workplace policies, business compliance obligations or the legal implications of these changes for your business, please get in touch with our team. We would be pleased to assist.
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