Top four new financial year changes you need to know about

As we waved goodbye to 2025–2026, we welcomed several changes affecting workplace law. Following are our top four:

The high-income threshold that determines employee access to Fair Work Act 2009 (Cth) (FW Act) unfair dismissal laws has increased to $190,100. Therefore, if an employee has completed the requisite qualifying period of service (6 months, or 12 months in the case of a small business employer), they can only access unfair dismissal laws if their gross income from the employment in the last 12 months does not exceed $190,100. There are certain rules applicable in determining what is included and excluded from the measure of income. It does not include compulsory superannuation. An exception to the operation of the high-income threshold as a cap for unfair dismissal claims is if the employee was covered by a modern award or enterprise agreement.
The national minimum wage increased to $26.44 per hour or $1,004.90 per 38-hour week.
The penalty unit for contraventions of the civil remedy provisions in FW Act occurring on or after 1 July 2026 increased to $364. This means the maximum fine that can be imposed on a body corporate employer for underpayment in contravention of an award or National Employment Standard provision is $546,000 (or $5,460,000 if the contravention is serious).
In New South Wales, work health and safety laws require employers to implement a systematic process to identify psychosocial hazards. Employers must, from 1 July, comply with the new code of practice, Managing psychosocial hazards at work, or be able to demonstrate they have an alternative approach that provides an equivalent or higher standard of protection.

As always, the Employment Law Handbook reflects these changes, and many more. Not subscribed? Start your free trial today.

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