As businesses approach the end of financial year, the focus often shifts to budgets, performance and planning. For many organisations, however, the more immediate risk sits in employment law changes that will reshape workforce costs, compliance obligations and operational decision-making into FY26/27.
Several key updates now require early attention.
1. Annual Wage Review – increased cost pressure
The Fair Work Commission has handed down its Annual Wage Review decision, confirming a 4.75% increase to minimum wages and modern award rates, effective from the first full pay period on or after 1 July 2026.
While expected, the increase has direct implications for:
- Workforce cost structures
- Award coverage assessments
- Enterprise agreement alignment
- Payroll accuracy and compliance
For many businesses, this is not simply a wage adjustment, it is a trigger point for reviewing how roles are structured, classified and managed.
2. Payday Super – a fundamental payroll shift
From 1 July 2026, employers will be required to pay superannuation at the same time as wages.
This represents a significant shift away from the current quarterly framework and introduces new considerations, including:
- Cash flow management
- Payroll system capability
- Payment processing disciplines
- Increased exposure to compliance risk if processes fail
For businesses with complex pay cycles or variable workforce structures, this change will require more than a technical update. It will demand a disciplined, consistent payroll approach embedded across the organisation.
3. Psychosocial risk – now a formal workplace obligation
Regulators are continuing to increase focus on psychological health and safety as part of work health and safety (WHS) obligations.
This includes clearer expectations around:
- Workload management
- Workplace behaviour and conduct
- Leadership accountability
- Organisational culture
Psychosocial risk is no longer a “soft” issue. It is a regulated area that requires active identification, management and governance.
Why this matters for FY26/27 planning
Individually, each of these changes is manageable. Collectively, they increase the level of complexity facing business leaders.
The intersection of:
- Rising workforce costs
- Stricter compliance requirements
- Greater scrutiny on leadership behaviour
creates a more demanding operating environment.
This is where many organisations become reactive, addressing issues once they arise rather than building capability in advance.
Preparing your business for what’s ahead
A structured approach to FY26/27 planning should now include:
- Reviewing workforce budgets against new wage obligations
- Validating award coverage and role classification
- Assessing payroll systems and processes for Payday Super readiness
- Strengthening leadership capability in managing performance and behaviour
- Updating policies to reflect evolving WHS and psychosocial risk expectations
The businesses that navigate these changes effectively will be those that treat employment law not as a compliance task, but as a core part of business performance and risk management.
Final word
The pace of employment regulation is not slowing. Expectations on businesses continue to rise, not only in what they do, but in how they lead, manage and govern their workforce.
Planning early provides clarity, reduces risk and puts leadership teams in a stronger position heading into the new financial year.