Australians will see a wide range of money changes from July 1, 2026, as the new financial year brings updates to tax rates, superannuation, minimum wages, Centrelink payments, parental leave and scam protections.
The changes will affect millions of taxpayers, workers, families and retirees. Some households will see extra money through tax cuts or wage increases, while other reforms are aimed at improving retirement savings and tightening protections against scams.
Tax cuts, instant deductions and wage changes
The lowest marginal tax rate will be reduced from 16 per cent to 15 per cent for taxable income between $18,201 and $45,000. More than 14 million Australians are expected to benefit, with tax savings of up to $268 in the 2026-27 financial year. The rate is scheduled to fall again to 14 per cent from July 1, 2027.
A new $1,000 instant tax deduction will also begin from the 2026-27 financial year. Eligible workers will be able to reduce taxable income by $1,000 without providing receipts when lodging their next tax return. Those claiming more than $1,000 in work-related deductions can still use the normal process. Official tax guidance is available through the Australian Taxation Office.
Minimum wage workers will also receive a pay increase. The Fair Work Commission has approved a 4.75 per cent rise, lifting the national minimum wage from $24.95 to $26.44 per hour. Based on a 38-hour week, that equals $1,004.90 per week, up from $948.
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Superannuation, Centrelink and family payment updates
Employers will be required to pay superannuation at the same time as wages under the new payday super system. Instead of quarterly payments, compulsory 12 per cent super contributions will need to be paid weekly, fortnightly or monthly, depending on the employee’s pay cycle.
Australians with superannuation balances above $3 million will face higher tax rates on earnings above that threshold, while balances above $10 million will attract a higher rate. Contribution caps are also increasing, with the concessional cap rising from $30,000 to $32,500 and the non-concessional cap moving from $120,000 to $130,000. The changes come as many Australians reassess retirement savings, with recent estimates suggesting that couples may need around $730,000 in superannuation for a comfortable retirement.
Centrelink thresholds and several family payment rates will increase through indexation. Family Tax Benefit Part A will rise to $235.48 a fortnight for children under 13 and $306.46 for children aged 13 and over. Family Tax Benefit Part B will increase to $200.34 a fortnight where the youngest child is under five, and $139.86 where the youngest child is aged five or older.
Age Pension and Disability Support Pension income and asset thresholds will also increase, giving some recipients more room before payments are reduced.
Paid Parental Leave will expand from 120 days to 130 days for children born or adopted from July 1. Based on a five-day week, eligible parents can access 26 weeks of pay. Partnered parents will have 20 days reserved for their partner, while single parents can access the full entitlement.
The Medicare Levy Surcharge thresholds will rise to $105,000 for singles and $210,000 for families. Australians earning above these limits without private hospital cover may still face the extra surcharge, in addition to the standard 2 per cent Medicare Levy.
New scam text rules will also begin. Text messages sent using an unregistered branded Sender ID will show as “Unverified” instead of using a trusted brand name. The change is designed to make it harder for scammers to impersonate organisations such as the ATO, banks or delivery companies.
Together, the July 1 changes mark a major update for Australian households, with tax relief, wage growth, superannuation reforms and indexed support payments all arriving at the start of the new financial year.
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