The Minimum Wage Has Just Gone Up: Here Is What To Do About It
Written by Brooke Fenwick - Partner.
The minimum wage has just gone up and here’s what to do about it…
The Fair Work Commission handed down its 2026 Annual Wage Review decision on the 2nd of June. If your business employs people on award wages, then this one will be relevant to you.
Here's the short version: modern award wages are increasing by 4.75%, and the National Minimum Wage is going up by 6%, to $26.44 per hour (or $1,004.90 per week). Both changes kick in from the first full pay period on or after 1 July 2026.
That's in a few weeks. So now's the time to get across it.
So, who does this actually affect?
Around 2.7 million award-reliant workers, and other employees paid the National Minimum Wage, will see a direct increase from this decision.
The impact will be felt most strongly in industries with high numbers of award-reliant employees, including hospitality, retail, care services and other labour-intensive sectors. If you operate in any of these spaces, your labour costs are about to shift in a meaningful way.
What should you actually do?
Here's our practical checklist:
Check your payroll reflects the new rates before 1 July. This is the non-negotiable one. Make sure the modern awards that apply to your team have been updated in your payroll system before the first full pay period after 1 July. If you're not sure which awards apply, now is the time to find out.
Review your labour to income percentages. A wage increase of this size may have a meaningful impact on your profit margin. Run the numbers- what does labour now represent as a percentage of your revenue? That's your starting point for everything else.
Revisit your pricing, margins and team KPIs. Your cost base has shifted, so your pricing strategy and performance targets may need to shift with it. Don't just absorb this quietly but instead use it as the prompt to make sure your numbers still stack up.
If you need support with forecasting and goal setting, reach out. We work with business owners to review profit, model the impact of changes like this, and set realistic targets going forward. If you'd like to know how we can help, get in touch and we'll walk you through it.
This is one of those moments where being proactive really does make a difference. Getting your numbers sorted now (rather than realising in August that your margins have quietly eroded) puts you in a much stronger position heading into the new financial year.
As always, we're here if you need us.
This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from your financial adviser and seek tax advice from your accountant.