25 August 2025

FY26 - Key employment figures

by Lawlux

Employers should be aware of changes to key employment figures, thresholds and rates that apply from 1 July 2025.

What are the new employment figures, thresholds and rates?

Threshold

Comments

1 July 2025 – 30 June 2026
High Income Threshold Relevant to unfair dismissal coverage & guarantee of annual income applicability $183,100 per annum
Unfair dismissal maximum compensation Not applicable The lower of $91,550 or 50% of the applicant’s annual earnings
National minimum wage – not award covered Excludes superannuation $947.95 per week

$24.94 per hour
Minimum casual wage – not award covered Excludes superannuation $31.18 per hour
Superannuation guarantee contribution Not applicable 12%
Tax free genuine redundancy payment Not applicable $13,100 base + $6,552 for each completed year of service
Employment termination payment cap Tax differs based on if the employee is under or over the preservation age and the extent to which payment is over the cap $260,000

What should employers do now to prepare?

Employers should consider the following:

  1. Review annualised salary arrangements.  Each annualised wage rate must meet or exceed the minimum award or wage entitlements with the 3.5% increase.
  2. Review enterprise agreement pay rates.  Depending of their terms, an increase to the minimum rates of pay and allowances may be required.
  3. Consider appropriate annual earnings in the context of the new high income threshold.
  4. Review payroll systems and processes.  Wages and superannuation contributions must comply with the new thresholds.

Would you like assistance?

Lawlux has considerable experience working with employers to ensure compliance with the Fair Work Act.

If you would like to discuss your situation, please contact us or get started with Lixo AI.

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