A good new financial year HR checklist comes down to five moves — update pay rates, recheck award classifications, reconcile annualised salaries, prepare for Payday Super, and refresh contracts and policies. Award minimum wages rise 4.75% from the first full pay period on or after 1 July 2026, so the cost of getting it wrong has climbed too.
For employers, a clear new financial year HR checklist is the difference between a smooth 1 July and a payroll headache. Each year the Fair Work Commission’s wage decision ripples through payroll, and 2026 is no exception: the National Minimum Wage lifts to $26.44 an hour ($1,004.90 a week for a 38-hour week). So get the basics locked in early, and the rest of the year runs easier.
What goes on a new financial year HR checklist?
In short: pay, people, and compliance. Here are the five steps that matter most for Australian employers, wherever you trade.
- Update your pay rates. First, apply the 4.75% increase from the first full pay period on or after 1 July 2026 and lift your award rates to match. The lowest ongoing rate is now $26.44 an hour.
- Recheck award classifications. Next, map every role to the right award and level. Watch the C13 phase-out — those employees move to C12 — and the entry-level C14 rate of $25.74 an hour, which applies for up to six months.
- Reconcile your annualised salaries. If you pay a salary, confirm it still leaves each person better off overall against their full award entitlement, including overtime, penalties and allowances. After a 4.75% rise, last year’s buffer may be gone, so top up any shortfall and reset the arrangement if it no longer clears the award.
- Prepare for Payday Super. Super is scheduled to be paid at the same time as wages from 1 July 2026, not quarterly. Therefore, check now that your payroll software, clearing house and cashflow can handle the switch.
- Refresh contracts and policies. Finally, make sure contracts reflect current pay and entitlements, and review key policies — including your psychosocial hazard duties under work health and safety law.
Why does the annual reconciliation matter?
Because an underpayment isn’t just a back-payment — it’s a compliance risk. With rates rising, salaries that quietly absorbed award entitlements can slip underwater overnight. As a result, a quick reconciliation now beats a costly correction later.
When should you bring in an HR consultant?
If your classifications are unclear, your annualised salaries are hard to test, or Payday Super has your payroll guessing, that’s the moment to get help. A short review can confirm you’re compliant and free you to focus on the year ahead. Want a second set of eyes before 1 July?
Book a complimentary session with our Brisbane team.
Overall, treat your new financial year HR checklist as a yearly reset, not a scramble — get your rates and classifications right, test your salaries, and prepare for Payday Super before the first July pay run. Ready to start the year clean?
Frequently Asked Questions
From the first full pay period on or after 1 July 2026, award minimum wages rise 4.75%. The National Minimum Wage becomes $26.44 an hour ($1,004.90 a week for 38 hours).
Payday Super is scheduled to commence on 1 July 2026 and will require employers to pay super at the same time as wages, rather than quarterly.
Reconcile the salary against the employee’s full award entitlement — including overtime, penalties and allowances — for the hours worked, and top up any shortfall so they remain better off overall.
The C13 classification is being phased out, with workers moving to C12 as the new minimum ongoing rate through a three-stage process; entry-level C14 is $25.74 an hour for up to six months.
Award-reliant employers — especially in hospitality, retail and care — feel the change most.
Check contracts reflect current pay rates and entitlements, update where they’ve fallen behind, and review key HR policies at the same time.
This article is general information only and does not constitute legal advice. For guidance tailored to your business, please contact a qualified HR or legal professional.