Everything Changing in Australia on 1 July 2026
Every new financial year on 1 July, Australia resets a long list of rates, thresholds, rules, and entitlements. This year, the changes are significant — and they affect nearly every person living and working in the country.
Here’s a clear breakdown of everything that changed on 1 July 2026.
Visa Fees — Up ~25% Across the Board
On 1 July 2026, the Department of Home Affairs raised most Australian visa fees by approximately 25% in one step — well above the usual 2–5% annual inflation adjustment.
Key new fees for the primary applicant:
- Skilled Visas (subclass 186, 189, 190, 491, 494): up from $4,910 to $6,140
- Skills in Demand (subclass 482): up from $3,210 to $4,015
- Partner Visa (820/309): up from $9,365 to $11,710
- Student Visa (subclass 500): up from $2,000 to $2,500
- Temporary Graduate Visa (subclass 485): up from $4,600 to $5,750
- Working & Holiday Visa (subclass 417 & 462): up from $670 to $840 for the first year, $1,000 to extend.
- Training Visa (subclass 406): up from $430 to $540
- Visitor (subclass 600): up from $200 to $250
The fee is set by the date Home Affairs receives your application, not the date you prepare your documents. If you lodged before 1 July 2026, the previous fee applies regardless of when the decision is made.
Minimum Wage — Up 4.75% (First Time Above $1,000/Week)
As of 1 July 2026, the National Minimum Wage is $26.44 per hour or $1,004.90 per week on a 38 hour base — the first time it has exceeded $1,000 per week.
Casual employees entitled to the National Minimum Wage must receive at least $33.05 per hour, which includes the 25% casual loading. Employees covered by an award must receive a 4.75% increase to their minimum wages.
These rates apply from the first full pay period starting on or after 1 July 2026.
Income Tax Cuts — Lower Rate for Every Australian Taxpayer
From 1 July 2026, the 16% tax rate applying to income between $18,201 and $45,000 is reduced to 15%. A further reduction to 14% is legislated for 1 July 2027.
Every Australian taxpayer earning above $45,000 will receive an extra tax cut of $268 in 2026–27. A worker on average earnings ($79,000) will get an extra tax cut of $268 this year.
New $1,000 Standard Work Deduction: From 1 July 2026, a $1,000 instant tax deduction for work-related expenses applies, allowing taxpayers to claim without needing to keep receipts for amounts up to $1,000.
Superannuation — Payday Super Starts Now
This is one of the biggest structural changes to the Australian super system in years.
From 1 July 2026, employers must pay superannuation contributions at the same time they pay their employees’ wages — instead of quarterly. Contributions must reach the employee’s nominated super fund within 7 business days of each payday.
The super guarantee rate remains at 12% of qualifying earnings.
Parental Leave — Extended to 26 Weeks
For children born from 1 July 2025, the government Parental Leave Pay entitlement increases to 130 days — equal to 26 weeks based on a 5-day work week. The previous entitlement was 120 days.
The 2026–27 Paid Parental Leave rate is $200.98 per day before tax — the equivalent of $1,004.90 per week, aligned to the new National Minimum Wage. The full 130-day entitlement is worth $26,127.40 before tax.
The number of leave days reserved for a partner or second parent increases from 15 to 20 days, on a “use it or lose it” basis.
Additionally, for children born from 1 July 2025, the ATO will pay a 12% superannuation contribution on Parental Leave Pay — paid automatically the following financial year.
Groceries — Coles and Woolworths Now Face Price Gouging Laws
From 1 July 2026, a new law prohibits any very large supermarket with revenue exceeding $30 billion — currently only Coles and Woolworths — from charging a price for a grocery product that is significantly excessive compared to the cost of supply plus a reasonable margin.
The law is enforced by the ACCC. Retailers found in breach face the greater of $10 million, three times the value of the benefit derived, or 10% of annual turnover during the preceding 12 months.
There is no fixed price ceiling — the ACCC will assess whether pricing is “significantly excessive” relative to cost of supply plus a reasonable margin, taking into account all relevant circumstances.
WA Fuel Support Payment — $100 for Licence Holders
From 1 July 2026, all eligible Western Australian driver’s licence holders can apply for a one-off $100 Fuel Support Payment — announced as a cost-of-living measure in the 2026–27 State Budget.
The payment is available to motorists with a valid WA driver’s licence, including learner’s permits, provisional, and extraordinary licences. To claim, you must have a WA residential address and an Australian bank account. Claims can be made via the ServiceWA app until 31 December 2026.
Important: Holders of a driver’s licence from another Australian jurisdiction or an overseas driver’s licence are not eligible. If you’re a skilled migrant in WA and have already converted your overseas licence to a WA licence, you qualify. If you haven’t converted yet, this is a practical reason to prioritise it.
Victoria — Electricity and Cost of Living Concessions
The Victorian Government is continuing to deliver concessions for energy, rates, water, and sewerage bills, with around $566 million in concessions in 2026–27 — saving eligible households an average of approximately $629. This includes a 17.5% reduction on electricity and gas bills for eligible concession card holders.
The state budget also halves public transport prices until 1 January 2027, covering trams, trains, and bus services across Victoria.
The Big Picture for Skilled Migrants
The 1 July 2026 changes are a mixed picture. Higher visa fees make the migration pathway more expensive. But higher wages, lower taxes, stronger super protection, and extended parental leave improve conditions for those already in Australia.
The fundamentals haven’t changed: the fastest way to increase your income as an overseas tradie is skills recognition. Moving from a labour rate to a qualified tradie remains the single biggest financial step available — and it starts with understanding your pathway.
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Frequently Asked Questions
Do the new visa fees apply if I already started my application before 1 July 2026?
No. The fee is set by the date the Department of Home Affairs receives your application, not the date you prepared your documents or paid your migration agent. If you lodged before 1 July 2026, the previous fee applies regardless of when the decision is made. If you lodge from 1 July 2026 onward, the new fee applies — even if your preparation started months earlier.
How much did skilled visa fees increase on 1 July 2026?
Most skilled visa fees increased by approximately 25% in one step — well above the usual annual inflation adjustment of 2–5%. These visa fees increased from $4,910 to $6,135 for the primary applicant. Family members included in the same application attract additional applicant charges on top of this amount.
When does the new minimum wage of $26.44/hr apply?
The new National Minimum Wage of $26.44 per hour applies from the first full pay period starting on or after 1 July 2026. If your weekly pay period starts on a Wednesday, the new rate applies from Wednesday 1 July. Most employees are covered by a modern award, which may set higher minimum rates than the National Minimum Wage — check the Fair Work Ombudsman’s Pay and Conditions Tool for your specific award.
How does the income tax cut affect my take-home pay?
The 16% tax rate applying to income between $18,201 and $45,000 has been reduced to 15% from 1 July 2026. For most employees, this change flows through automatically via updated PAYG withholding — your employer adjusts without you needing to submit a new TFN declaration. The saving is up to $268 per year for anyone earning above $45,000. Check your first payslip after 1 July to confirm the new rate is being applied.
What is the new $1,000 standard work deduction and how do I claim it?
From 1 July 2026, you can claim a $1,000 instant deduction for work-related expenses without keeping receipts or itemising costs. If your actual work-related expenses exceed $1,000, you can instead claim the higher amount — provided you have the required records. The deduction reduces your taxable income, not your tax bill directly. You’ll receive the benefit when you lodge your 2026–27 tax return.
What is Payday Super and how does it affect me as an employee?
Payday Super means your employer must now pay your superannuation contributions at the same time as your wages — weekly, fortnightly, or monthly — instead of quarterly. Contributions must reach your super fund within 7 business days of each payday. As an employee, this means you can verify your super is being paid in near real-time through your MyGov account. If contributions aren’t appearing within a week of payday, contact your employer or the ATO.
Am I eligible for the WA Fuel Support Payment as a migrant?
You are eligible if you hold a valid Western Australian driver’s licence — including a learner’s permit, provisional, or extraordinary licence — and have a WA residential address and an Australian bank account. Overseas driver’s licences and licences from other Australian states do not qualify. If you haven’t yet converted your overseas licence to a WA licence, this is a practical reason to prioritise it. Claims can be made via the ServiceWA app until 31 December 2026.
Will the new price gouging laws actually lower grocery prices at Coles and Woolworths?
Not necessarily — at least not immediately. The new law prohibits pricing that is significantly excessive relative to cost of supply plus a reasonable margin, but there is no fixed price ceiling. The ACCC will monitor pricing and investigate where needed. Significant penalties apply for breaches. The practical effect is that Coles and Woolworths are now under formal regulatory scrutiny for their pricing decisions — which may influence their behaviour over time, but is unlikely to produce overnight price reductions.
Do the parental leave changes apply to migrants?
Eligibility for government Parental Leave Pay depends on your work history, income, residency status, and visa type. Most temporary visa holders who meet the work and income tests are eligible, but some visa conditions may affect your entitlement. Services Australia assesses each claim individually. If you’re unsure, check your eligibility directly at servicesaustralia.gov.au or speak with a registered migration adviser alongside your Centrelink claim.
How do all these changes affect my skills recognition pathway with Oversix?
Higher visa fees make it more important than ever to get your recognition right the first time — a refused application now wastes a significantly larger sum. Payday Super means your contributions are easier to track and verify, which strengthens your employment records for an RPL application. And higher wages across the board mean the gap between your current unrecognised rate and a licensed trade rate is even more worth closing. If you haven’t started your skills recognition journey yet, book a Free Eligibility Check at oversix.com.au/check — it takes two minutes.