Legal Alert: Employment Law Cost Changes Commencing 30 June and 1 July 2026

Legal Alert: Employment Law Cost Changes Commencing 30 June and 1 July 2026

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Employment Law Cost Changes Commencing 30 June and 1 July 2026

Author: Robert Lamb, Claudia Molachino 

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3 min read

2 Jul 2026

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    Key Takeaways
  • ࠂ
    Employers need to prepare for several significant employment law changes taking effect from 30 June and 1 July 2026.
  • ࠂ
    Payroll systems, superannuation processes and employee pay rates should be reviewed to ensure they reflect the new legal requirements.
  • ࠂ
    Health and pharmacy employers face award-specific wage increases, while all employers need to comply with new superannuation and minimum wage obligations.
  • ࠂ
    Taking proactive steps now can help minimise the risk of underpayments, penalties and workplace disputes.

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A number of significant employment law cost changes commence from 30 June and 1 July 2026. These reforms affect employer obligations relating to superannuation, minimum wages, modern awards and Paid Parental Leave.

Now is the time to ensure your payroll systems, employment practices and workplace policies are up to date.

30 June 2026 

Wage increases to awards found subject to gender-based undervaluation

As part of the Fair Work Commission's gender undervaluation reforms, the following increases take effect from the first full pay period commencing on or after 30 June 2026:

  • The first of five staged wage increases under Health Professionals and Support Services Award 2020
  • The second of three phases of wage increases under the Pharmacy Industry Award 2020
  • The first of three increases to minimum rates under the Children’s Services Award 2010

Employers should:

  • Review relevant award/s and identify confirm new rates. The Fair Work Ombudsman Pay and Conditions Tool can provide useful guidance: P.A.C.T Pay Calculator - Find your award
  • Review employee classifications and confirm employees are correctly classified
  • Update payroll systems with to reflect minimum award rates

1 July 2026

Payday Super Begins

Superannuation contributions must now be received by an employee's nominated super fund within seven business days of each payday. This replaces the current quarterly payment system.

Employers should:

  • Review payroll and superannuation processes
  • Consider any cashflow impacts of more frequent super payments
  • Ensure payroll systems can meet the new payment deadlines

New Super Calculation Rules

The Super Guarantee will now be calculated using qualifying earnings (QE) rather than ordinary time earnings (OTE).Qualifying earnings include OTE, commissions and certain salary sacrifice amounts.

Employers should:

  • Review payroll systems
  • Review current remuneration arrangements, particularly commission-based or complex arrangements
  • Confirm superannuation is being calculated correctly

Expanded Paid Parental Leave

Eligible families with children born or adopted on or after 1 July 2026 will be entitled to 26 weeks (130 days) of Government-funded Paid Parental Leave, an increase from the previous entitlement of 24 weeks.

Employers should ensure their parental leave policies and employee communications reflect the expanded scheme.

Superannuation on Paid Parental Leave

The Australian Taxation Office will make superannuation contributions of 12% to current and future recipients of government funded paid parental leave, and to those who received government funded paid parental leave in the 2025-26 financial year.

Minimum Wage Increases

From the first full pay period commencing on or after 1 July 2026:

  • The National Minimum Wage increases to $26.44 per hour ($1,004.90 per week)
  • Modern award minimum wages increase by 4.75% 

Employers should also review salary and annualised wage arrangements to ensure employees remain better off overall.

Employers should:

  • Review employee pay rates
  • Update payroll systems
  • Check annualised salary arrangements remain compliant

What Employers Should Do Now

With multiple changes taking effect within a short period, employers should take the opportunity to review their workplace compliance obligations.

Key actions include:

  • Review award classifications and employee pay rates
  • Update payroll systems for the new wage and superannuation requirements
  • Ensure compliance with the new Payday Super regime
  • Review employment contracts and remuneration arrangements where necessary
  • Update parental leave policies and employee communications

Failure to comply with workplace laws can expose employers to underpayment claims, financial penalties and costly workplace disputes.

If you are unsure how these changes affect your business, require assistance reviewing your employment practices or believe you may have failed to comply with one or more of your workplace law obligations, the Employment & Industrial Relations team at Hillhouse Legal Partners can assist.

Please contact Robert Lamb on (07) 3220 1144 or robert@hillhouse.com.au.

Areas of Expertise

Government
Employment & Industrial Relations
Related Posts:
5 Things to Know About the AML/CTF Reforms from 1 July 2026

5 Things to Know About the AML/CTF Reforms from 1 July 2026

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5 Things to Know About the AML/CTF Reforms from 1 July 2026

Author: Craig Hong 

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3 min read

4 Jun 2026

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    Key Takeaways
  • ࠂ
    From 1 July 2026, professional service providers like Hillhouse Legal Partners will be legally required to verify client identity and conduct additional compliance checks.
  • ࠂ
    Clients may need to provide documents such as photo ID, company or trust records and information about the source of funds for certain transactions.
  • ࠂ
    These checks apply to everyone and are part of a broader effort to help prevent money laundering, fraud and financial crime in Australia.

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From 1 July 2026, major new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will change how professional service providers, including law firms like Hillhouse Legal Partners, work with their clients across Australia.

For many people, this will mean providing more identification and information when working with lawyers, accountants, real estate agents and other advisers.

While the process may feel unfamiliar at first, these changes are designed to help protect Australia’s financial system, businesses and communities from criminal activity.

  1. More industries are now captured by the laws

Australia’s AML/CTF laws are expanding to include more industries and professions.

From 1 July 2026, these obligations will apply to businesses including:

  • Law firms like Hillhouse
  • Accounting firms
  • Real estate agencies
  • Trust and company service providers
  • Businesses involved in high-value transactions

These reforms will require firms to:

  • Verify client identity
  • Understand who owns or controls companies and trusts
  • Assess money laundering risks
  • Monitor certain transactions and activities
  • Report suspicious matters to AUSTRAC
  1. Clients will need to provide more information

From 1 July, Hillhouse clients may notice additional checks and requests for information when engaging our team for certain legal services and transactions.

Depending on the work involved, our team may request:

  • A passport or driver licence
  • Proof of address
  • Company, trust or SMSF documentation
  • Information about ownership or control of entities
  • Source of funds information for certain transactions

These checks will become a standard legal requirement across many industries and services.

Importantly, businesses and professional advisers, including law firms, may not be able to provide some services if the required information is not supplied.

  1. The laws are designed to target financial crime

AUSTRAC estimates more than $68 billion of crime-related money is laundered through Australia every year.

The reforms are designed to:

  • Help prevent organised crime and fraud
  • Reduce financial abuse and illegal activity
  • Protect businesses and consumers
  • Bring Australia in line with global AML standards

These laws are not aimed at everyday Australians doing the wrong thing.

They are designed to stop criminals from using legitimate businesses and professional services to move illegal money through the economy.

  1. The checks apply to everyone

Under the new laws, firms like Hillhouse will need to understand who they are acting for and assess whether certain transactions or arrangements present higher risks.

For example, where companies or trusts are involved, firms may need to identify the individuals who ultimately own or control those structures.

This does not mean there is a problem with a client or transaction.

The law requires firms to apply consistent checks across their client base.

  1. Hillhouse is preparing now to support clients

At Hillhouse Legal Partners, our team has been preparing for these reforms for some time to ensure we are ready to support our clients well before the changes commence.

Our focus is on making the process as practical, secure and straightforward as possible.

Hillhouse clients can expect:

  • Clear communication about what is required
  • Secure handling of personal information
  • Streamlined systems and processes
  • Support and guidance throughout the process

We understand these changes may raise questions for clients and businesses alike.

The Hillhouse team is here to help clients understand what the new obligations mean and how they may affect future transactions and engagements.

While the additional checks may feel like another layer of administration, they form part of a much broader effort to help protect Australia’s financial system and reduce financial crime.

For further guidance and information please visit www.austrac.gov.au.

If you have any questions please reach out to us at email@hillhouse.com.au

Areas of Expertise

Government
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FWC Announces Major Wage Increase Today Ahead of 1 July 2026 Changes

FWC Announces Major Wage Increase Today Ahead of 1 July 2026 Changes

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FWC Announces Major Wage Increase Today Ahead of 1 July 2026 Changes

Author: Robert Lamb

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3 min read

2 Jun 2026

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    Key Takeaways
  • ࠂ
    From 1 July 2026, the Fair Work Commission will increase modern award minimum wage rates by 4.75%, with the National Minimum Wage also increasing to align with the new lowest ongoing award rate.
  • ࠂ
    Employers should review employee classifications, payroll systems, budgets, and remuneration arrangements to ensure compliance with the new wage rates from the first full pay period on or after 1 July 2026.
  • ࠂ
    These changes will affect approximately one in five Australian employees, requiring many businesses to review payroll systems, employee classifications, budgets and remuneration arrangements before the new rates take effect.

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The Fair Work Commission (FWC) today announced a 4.75% increase to modern award minimum wage rates and an increase to the National Minimum Wage, effective from 1 July 2026.

As the National Minimum Wage applies to employees who are not covered by a modern award, today’s decision will impact employers and employees across Australia. The changes are expected to have a particularly significant impact in industries heavily reliant on award-covered workers including health care, hospitality, retail, administration and support services.

The increase follows the FWC’s Annual Wage Review process and represents one of the more significant minimum wage increases in recent years.

What are the new minimum wage rates?

The National Minimum Wage will increase by approximately 6% to align with the new lowest ongoing modern award rate.

The FWC also confirmed that modern awards containing a C13 classification level will see that level phased out.

As a result:

The lowest wage rate for ongoing employment under the modern award system will increase to:

  • $1,004.90 per week, or
  • $26.44 per hour

The lowest wage rate for entry-level employment for up to six months will increase to:

  • $978.10 per week, or
  • $25.74 per hour

The weekly rate is based on a 38-hour working week for a full-time employee.

Employees will generally be entitled to the increased rates from the first full pay period on or after 1 July 2026.

These changes will require many employers to review payroll systems, employee classifications, budgets and remuneration arrangements ahead of 1 July 2026.

Who will be impacted?

The increase will affect approximately one in five Australian employees who are paid minimum award wages.

According to the FWC:
• More than 60% of award-reliant employees are female
• More than 70% work part-time hours
• More than half are casual employees
• A large proportion work in:

  • accommodation and food services
  • health care and social assistance
  • retail trade, and
  • administrative and support services

Businesses operating in these sectors are likely to experience the most immediate financial and operational impact from the increases.

Why did the FWC increase wages?

In its decision, the FWC acknowledged that economic conditions throughout much of 2025 remained relatively strong, including continued employment growth, increased productivity and business investment.

However, the Commission also noted inflation increased significantly during the second half of 2025, driven in part by global instability and the ongoing conflict in the Middle East.

The FWC found this widened the “real wage gap” between inflation and modern award wage increases, impacting the living standards and financial capacity of low-paid workers.

While the FWC did not award an increase sufficient to fully close that gap, it stated the increase was intended to ensure award-reliant employees were generally not worse off in real terms than they were as at 1 July 2025.

What should employers do now?

With the changes taking effect from 1 July 2026, employers should begin preparing now.

Key steps may include:

  • Reviewing applicable modern awards and employee classifications
  • Updating payroll systems and pay rates
  • Reviewing casual, part-time and entry-level employee arrangements
  • Checking annualised salary arrangements remain compliant
  • Reviewing whether enterprise agreements linked to annual wage review increases require updating
  • Assessing workforce planning and budgeting impacts
  • Ensuring employment contracts and remuneration structures remain compliant

Employers should also be aware that award compliance remains a key enforcement focus for the Fair Work Ombudsman, particularly in industries with large casual or award-reliant workforces.

Businesses should familiarise themselves with any specific modern award amendments applying to their workforce before 1 July 2026 to ensure compliance.

Failure to implement updated rates from the first full pay period on or after 1 July 2026 may expose employers to underpayment claims, penalties and compliance investigations.

How we can help

Hillhouse Legal Partners regularly advises employers on award compliance, employment contracts, payroll obligations and workplace risk management.

If you would like assistance reviewing your workplace arrangements ahead of the 1 July 2026 changes, please contact our Employment & Industrial Relations team.

This article is general information only and does not constitute legal advice.

 

Areas of Expertise

Employment & Industrial Relations
Related Posts:
Federal Budget Proposal Signals Major Changes for Testamentary Trusts

Federal Budget Proposal Signals Major Changes for Testamentary Trusts

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Federal Budget Proposal Signals Major Changes for Testamentary Trusts

Author: Robert Lamb, Anna Huang

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3 min read

28 May 2026

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    Key Takeaways
  • ࠂ
    Discretionary Testamentary Trusts have long been recommended as a prudent estate planning strategy for asset protection and tax-effective distribution of assets to beneficiaries.
  • ࠂ
    The Government announced, in the latest Federal Budget, a proposal to impose a minimum 30% tax rate on income from discretionary testamentary trusts established from 1 July 2028, significantly changing their future taxation treatment, while fixed testamentary trusts remain unaffected.
  • ࠂ
    Testamentary trusts established under a Will do not take effect when the Will is signed, but typically arise only after the Will maker’s death and, in most cases, once Probate has been granted and the executor establishes the trusts, which may occur well after 1 July 2028.
  • ࠂ
    It is important to ensure your Estate Plan remains flexible and aligned with changing taxation and succession planning considerations.

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Discretionary Testamentary Trusts have long formed an important part of many estate plans and we have recommended them to numerous clients over many years. They remain a prudent strategy for asset protection and tax effective distribution of assets to beneficiaries under the law as it has stood for many decades.

As part of the Federal Budget released this month, the Government announced a proposal to impose a minimum tax rate of 30% on the income of discretionary testamentary trusts established from 1 July 2028. This represents a significant change in the law on the future taxation treatment of discretionary testamentary trusts. The change does not apply to other forms of testamentary trusts, including fixed testamentary trusts.

At this stage, the legislation has not yet been finalised or passed by Parliament. Accordingly, the information in this update is subject to the final form of the legislation as passed by Parliament.

It is important to note that the testamentary trusts created under a Will do not actually come into existence when the Will is signed. Rather, testamentary trusts generally only come into existence upon the death of the Will maker at the earliest and, more commonly, shortly thereafter when the executor of the estate establishes the testamentary trusts after Probate is granted. Accordingly, testamentary trusts contemplated under a Will may not come into existence until well after 1 July 2028.

In most cases, our Wills include a provision allowing a beneficiary to direct the executor not to transfer some or all of their entitlement under the Will into a testamentary trust. This clause provides beneficiaries with flexibility to decide at the relevant time whether establishing the testamentary trust remains appropriate, taking into account the taxation and other implications applying at that time.

In some circumstances, clients have instructed us not to include this flexibility. This may occur, for example, where a beneficiary is considered too young or inexperienced to manage an inheritance independently, or where the client specifically wishes to ensure assets remain protected within a Testamentary Trust structure regardless of the beneficiary’s preference. Under the proposed changes, discretionary testamentary trusts of this nature established after 1 July 2028 may become subject to the proposed minimum 30% tax rate.

In light of this significant proposed change to the taxation treatment of discretionary testamentary trusts, now may be an opportune time to review your Wills and broader estate planning arrangements. We have reviewed many Wills that require assets to be transferred into a discretionary testamentary trust and therefore may not provide the same degree of flexibility under the proposed regime.

If you are uncertain whether your current arrangements may be affected, we would be pleased to review your Will and advise whether any changes should be considered. Once the proposed legislation is finalised, we will also be able to provide more specific recommendations as to whether amendments to your Estate Plan or Will may be desirable or necessary.

Key Takeaway

While the proposed changes are not yet law, they highlight the importance of ensuring your Estate Plan remains flexible and aligned with evolving taxation and succession planning considerations. Reviewing your arrangements now may help avoid unintended outcomes for beneficiaries in the future.

 

To arrange a confidential review or discuss your Estate Planning arrangements, please contact Anna Huang and our Wills & Estates team on (07) 3220 1144 or via email at email@hillhouse.com.au.

Areas of Expertise

Wills & Estates
Government
Related Posts:
ACCC v Coles: A Landmark Case in Consumer Protection

ACCC v Coles: A Landmark Case in Consumer Protection

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ACCC v Coles: A Landmark Case in Consumer Protection

Author: Craig Hong, Claudia Molachino

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3 min read

19 May 2026

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    Key Takeaways
  • ࠂ
    The Federal Court’s findings against Coles over its “Down Down” campaign show that retailers may breach consumer law when advertised discounts are based on prices that were only briefly increased beforehand
  • ࠂ
    The case highlights that even commercially justified price increases can still mislead consumers if “sale” pricing does not reflect a genuine and sustained previous price
  • ࠂ
    The decision sends a strong warning to supermarkets and retailers that discount advertising must accurately represent real consumer savings under Australian Consumer Law

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ACCC v Coles: A Landmark Case in Consumer Protection

On 14 May 2026, the Federal Court of Australia found that Coles Supermarkets Australia Pty Ltd (Coles) made false or misleading representations about the prices of products, in contravention of sections 18(1) and 29(1)(i) of the Australian Consumer Law (ACL).

Background

The Australian Competition and Consumer Commission (ACCC) commenced proceedings against Coles in September 2024, alleging that it made false or misleading representations about the prices of 245 products (affected products). Separately, a class action was also brought against Coles in relation to those products. The Federal Court previously ordered that liability in both proceedings be determined jointly.

The allegations concerned Coles’ ‘Down Down’ promotional pricing tickets, which advertised discounted prices against a ‘Was’ price. It was alleged that Coles temporarily increased the prices of the affected products by at least 15% for a relatively short period before including those products in its Down Down promotion at prices that were the same as, or higher than, the original prices. The ACCC argued that the discounted prices were not genuine and were therefore false or misleading.

Key issues

The Court considered a sample of 14 affected products and accepted that the Down Down tickets conveyed to ordinary consumers that Coles had discounted the price of those products from the ‘Was’ price and that the discount was genuine.

To determine whether consumers had been misled, Justice O’Bryan considered, in relation to the sampled products:

  1. the reason/s for the price increase prior to inclusion in the Down Down promotion
  2. the extent of the price increase
  3. the number of products sold at the ‘Was’ price
  4. how long the products were sold at the ‘Was’ price

His Honour concluded that:

  1. the price increases were due to increases in supplier costs and were commercially justifiable
  2. the increased prices were not ‘artificially high’
  3. products were sold at the ‘Was’ price in the ordinary course of business and in commercial volumes
  4. products were generally sold at the ‘Was’ price for four weeks, which, having regard to the matters below, was not a reasonable period

In determining what constituted a reasonable period, the Court considered several matters, including a previous internal policy requiring a product to be sold at a particular price for 12 weeks before that price could be advertised as a ‘Was’ price on a Down Down ticket. Notably, that policy had been relaxed due to perceived competitive pressure from Woolworths.

The Court considered that if an ordinary consumer were told a product had been sold at the ‘Was’ price for less than 12 weeks, they would not regard the discount as genuine.

Decision

The Court ultimately found that 13 of the 14 sampled Down Down tickets were misleading because the ‘Was’ prices displayed on the promotional tickets were not maintained for a reasonable period and did not accurately represent the previous prices of the products. As a result, the discounts represented were not genuine and were misleading.

The only sampled Down Down ticket found not to be misleading did not include a ‘Was’ price.

Penalties and other orders sought by the ACCC, as well as compensation sought separately in the class action, are yet to be determined by the Federal Court, although it is anticipated that the amounts involved will be substantial.

Impact for businesses

The judgment serves as an important reminder for businesses to maintain transparency and accuracy in their marketing practices. Businesses should review their promotional strategies and internal policies to ensure strict compliance with the ACL.

If you are unsure about your obligations, please contact us.

 

Areas of Expertise

Corporate & Commercial
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Legal Alert: PCBUs Now Required to Implement Sexual Harassment Prevention Plan

Legal Alert: PCBUs Now Required to Implement Sexual Harassment Prevention Plan

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Legal Alert: PCBUs Now Required to Implement Sexual Harassment Prevention Plan

Authors: John Davies

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2 min read

12 Mar 2025

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    Key Takeaways
  • New Legal Requirement: Starting from 1 March 2025, all Persons Conducting a Business or Undertaking (PCBU) in Queensland must create and implement a Sexual Harassment Prevention Plan to address risks related to sexual harassment and sex/gender-based harassment in the workplace.
  • Consultation and Accessibility: PCBUs are required to consult with employees on the plan, ensure it is written clearly, and accessible. The plan must identify risks, control measures, and include procedures for managing harassment reports.
  • Penalties for Non-Compliance: Failure to comply with the requirements, such as preparing, implementing, and reviewing the Prevention Plan, can result in fines of up to $9,678 for businesses.

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From 1 March 2025, Persons Conducting a Business or Undertaking (PCBU) must prepare and implement a Prevention Plan to manage the risk of sexual harassment and sex or gender-based harassment in the workplace, as mandated by section 5 of the Work Health and Safety Act 2011 (Qld).

Before putting a Prevention Plan in place, the PCBU are required to consult with their employees on its terms and process, ensuring compliance with the consultation se out in the Act.

The Prevention Plan must:

  • be in writing;
  • state each identified risk;
  • identify control measures implemented to manage identified risks;
  • identify considerations required to be made in determining control measures (for example specific vulnerabilities such as age or LGBTQIA+ status of workers, and the workplace environment);
  • describe the consultation process undertaken when devising the Prevention Plan;
  • develop procedures for managing reports of sexual harassment or sex or gender-based harassment; and
  • be set out and expressed in a way that is readily accessible and understandable to workers.

The PCBU must:

  • take reasonable steps to make workers aware of the Prevention Plan and how to access it; and
  • review the Prevention Plan in the event of:
    • a report of sexual harassment or sex or gender-based harassment; or
    • a request from a health and safety committee or representative; or
    • at least once every three years.

A fine of up to 60 penalty points, currently equivalent to $9,678, may be imposed on non-compliant PCBUs for failure to:

  • prepare a Prevention Plan;  
  • implement the Prevention Plan;  
  • make workers aware of the Prevention Plan; or
  • review the Prevention Plan when required.

Queensland businesses should promptly begin the consultation process and prepare a prevention plan if they have not already.

Workplace Health and Safety Queensland has published useful resources including a guide, template, and example Prevention Plan on its website, which you can access here. Care should be taken when using a precedent plan, as it may not be sufficiently tailored to your business.

For further guidance on your obligations regarding the Prevention Plan or other employment law matters, please contact John Davies or Robert Lamb on 07 3220 1144.

Areas of Expertise

Corporate & Commercial
Employment & Industrial Relations
Government
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