The Big Changes coming in the 2026-27 Financial Year: What businesses need to know

The 2026-27 financial year is hurtling towards us, and for small businesses focused on the EOFY, there are some things they may have missed. Let’s look at the big changes going into effect from July 2026.

Payday Super: 1 July 2026

Payday Super changes how every business pays its employees. The payroll compliance update — biggest change since STP — requires that superannuation be paid alongside salary and wages (now called qualifying earnings). This means businesses need to alter their payroll processes and update their cash-flow behaviour.

Quarterly superannuation guarantee (SG) contributions are out, and businesses need to pay SG contributions to an employee’s designated superfund within 7 business days of salary and wages. So instead of paying superannuation four times per year, super payments may need to be made as often as 52 times per year (depending on the business’s pay frequency).

To prepare your small business for the upcoming payroll compliance changes, check out our free Payday Super resources:

• Payday Super Hub for all things related to the new payroll laws.
• Payday Super Checklist to prepare your business for 1 July.
• Payday Super Cash Flow Calculator to forecast the cash you’ll need for every pay run.

Upcoming July super contributions pitfall

July could require multiple super liability payments from a business. First, a business will need to ensure it has settled the April-June SG payments to its employees’ super funds, which are due by 28 July. Secondly, the business needs to account for the Payday Super rules, which can result in a large cash payment commitment.

Another factor to consider is that the ATO will apply any super contributions to whatever outstanding super liability comes first. If you have not settled the April-June liability — or any other older outstanding liability — any super payments made will contribute to that liability first until it has been cleared.

To avoid getting caught out, make sure to settle the quarterly payment first, or simultaneously alongside your first Payday Super SG contribution.

Minimum Wage increases: 1 July 2026

The national minimum wage has risen by 4.75%, increasing the weekly rate to $1004.90 or $26.44 an hour (for those not under an award). For those who do have employees under an award, using the Fair Work Ombudsman’s pay tool will help you find the specific rate.

The increase is another pay commitment for small businesses and a win for those in entry-level roles as the cost of living bites. The change means employers with staff on the affected rate will need to update their payroll systems mid-week, as 1 July falls on a Wednesday. For instance, a cafe owner will pay their staff for the week of 29th-5th: Monday and Tuesday will be processed at the previous rate, and Wednesday through Sunday will be at the new rate.

$20,000 Instant Asset Write-Off and Loss Carryback Scheme made permanent: 1 July 2026

The May 2026 federal budget has sparked a major debate over the tax reforms proposed by the Albanese Labor government, but there are also some schemes that benefit small businesses:

$20,000 Instant Asset Write-Off:

• Made permanent for businesses from 1 July 2026.
• Available to all businesses with an aggregated turnover under $10 million.
• Can be applied to an asset equaling or under (≤) $20,000.

Loss Carryback Scheme:

• Allows businesses to carry back revenue losses and offset them against tax paid on the previous 2 financial years.
• Available for businesses (under a corporate structure) with an aggregated turnover of under $1 billion.
• This applies only to revenue losses and is capped by a company’s franking account balance.

New SMS Messaging Rules: 1 July 2026

Businesses that use branded SMS messaging to communicate with their customers will need to register their details with their telecommunications provider. If your business isn’t registered, from 1 July 2026, your sender ID will show as ‘unverified’.

The details that your business will need to provide are:

1. Business name
2. ABN
3. Reason for sending

The changes have been introduced by the Australian Communications and Media Authority (ACMA) to help combat scams via SMS messaging.

Anti-money laundering & Counter-terrorism financing (AML/CTF) registration for certain businesses: 29 July 2026

Under the AML/CTF Amendment Bill 2024, more professional service providers will be required to register with Austrac. These services include:

• Real estate businesses, professionals, agents, buyers’ agents, and property developers.
• Dealers in precious stones, metals and products.
• Lawyers, conveyancers, and legal services.
• Accountants, trust, and company service providers.
• Businesses providing certain virtual asset services (beyond currently regulated digital-to-fiat currency exchange services).

These entities will need to enrol via AUSTRAC online by the 29th July 2026. As these services are considered high risk by AUSTRAC, businesses need to conduct due diligence and register with the agency to combat money laundering and terrorism funding.

The new policy requires these businesses to:

1. Enrol with AUSTRAC by 29 July 2026.
2. Develop a program that conducts a risk assessment of their clients.
3. Perform due diligence on high-risk customers.
4. Report to AUSTRAC when certain events/transactions are initiated by a client.
5. Record keeping for 7 years.

RBA Card Surcharge Ban: 1 October 2026

The RBA has banned surcharges on card transactions, like debit, prepaid, and credit cards, on EFTPOS, Visa, and Mastercard networks. This ruling applies only to a transaction surcharge to cover merchant payment provider fees, not to holiday surcharging.

For instance, if you charge a customer a price for the services provided and then, at payment, add a transaction fee to cover the processing fee you incur, that is prohibited. Businesses that surcharge to cover merchant processing fees must either absorb the cost or increase prices to accommodate. Essentially, whatever price is advertised, that is the price you must provide.

The ruling also reduces interchange fees, meaning businesses should see lower costs associated with processing card payments.

Junior Pay Rates Phaseout: 1 December 2026

The phaseout plan for junior pay rates begins in December. The Fair Work Commission has ruled that the wage scale for workers under 21 who are paid under the general retail, fast food, and pharmaceutical industry award is not fit for purpose. The phaseout also includes a pay lift for under-16-year-olds and 17-year-olds.

• Under-16s have their pay lifted from 45% to 50% of the award.
• 16-year-olds will keep 50% of the award.
• 17-year-olds will have their pay lifted from 60% to 75%.

Fair Work Commission Phase-out plan:

It is important to be aware that this is the proposed phaseout plan, and the details are still being ironed out. However, it’s best for any affected businesses with young workers to plan for these changes now to accurately forecast cash flow.

Preparing for the 2026-2027 Financial Year

Every business with employees needs to account for the Payday Super compliance changes taking effect on 1 July 2026. Everything else mentioned above is industry or circumstance-related, but still important, whether it is a Payday Super or a minimum wage increase; non-compliance comes with penalties.