Just A Click Away.
What Changes on 1 July 2026?
From 1 July 2026, three significant employment law changes take effect in Australia. These affect minimum wages, superannuation (super) contribution rates, and leave entitlements. For employers who sponsor workers on temporary or permanent employer-sponsored visas, compliance with these changes is not optional. It is a condition of maintaining approved sponsorship status.
Minimum Wage Increase
The National Minimum Wage is adjusted annually by the Fair Work Commission. The 1 July 2026 increase applies to all employees covered by the national workplace relations system, including visa holders on subclass 482, 494, and 186 visas. Sponsored workers must be paid at least the Temporary Skilled Migration Income Threshold (TSMIT) or the annual market salary rate for their nominated occupation, whichever is higher. If the minimum wage or award rate for an occupation rises above what is currently being paid, employers must adjust salaries immediately from 1 July 2026.
Superannuation Guarantee Rate Increase
The Superannuation Guarantee (SG) rate increases to 12% from 1 July 2026, up from the previous 11.5%. This is the legislated endpoint of the staged SG increases under the Superannuation Guarantee (Administration) Act 1992. All eligible employees, including sponsored visa holders, must receive super contributions at the new rate. Employers who fail to meet the SG rate are liable for the Superannuation Guarantee Charge (SGC), which includes the shortfall, interest, and an administration fee.
Leave Entitlement Changes
Changes to leave entitlements, including updates related to family and domestic violence leave provisions and casual employee rights, may also take effect from this date under the Fair Work Act 2009. Employers should review their enterprise agreements and employment contracts to confirm all entitlements remain compliant with any updated National Employment Standards (NES).
Why This Directly Affects Sponsored Visa Employers
Approved sponsors under the Temporary Skills Shortage (TSS) subclass 482, Skilled Employer Sponsored Regional (subclass 494), and Employer Nomination Scheme (subclass 186) programs are legally required to meet their sponsorship obligations at all times. These obligations include ensuring sponsored workers are paid no less than the market salary rate for their occupation and work location. Non-compliance, including underpayment of wages or super, may result in:
- Administrative sanctions or civil penalties under the Migration Act 1958
- Cancellation of sponsorship approval
- Barring from future sponsorship applications
- Referral to the Australian Border Force (ABF) or Fair Work Ombudsman (FWO)
Practical Steps for Employers Before 1 July 2026
- Review the current salary for each sponsored worker against the updated minimum wage and any applicable award rates.
- Confirm that super contributions are being calculated and remitted at 12% from 1 July 2026.
- Update employment contracts and payroll systems before the effective date.
- Check that any enterprise agreement rates remain above the new NES minimums.
- Seek legal advice if any nominated occupation's salary may fall below the TSMIT or market salary rate after the increase.
Key Takeaways
- The superannuation guarantee rate increases to 12% from 1 July 2026.
- The National Minimum Wage is adjusted from the same date by the Fair Work Commission.
- Sponsored visa employers must comply with both employment law and migration sponsorship obligations simultaneously.
- Underpayment of wages or super is a direct breach of sponsorship obligations and carries serious consequences.
- Employers should review payroll, contracts, and super arrangements before 30 June 2026.
The content of this article is intended for general informational purposes only and does not constitute legal advice. Immigration law is complex and subject to change. The information provided may not reflect the most current legal developments. For advice specific to your circumstances, please consult a registered Australian migration lawyer. For full terms governing use of this website and its content, please refer to our Website Terms and Conditions.
Speak with a Riverwood Migration Lawyer
As a regulated Australian migration law practice, Riverwood Migration provides precise, personalised advice on visa strategy, compliance, and application preparation. Speak with our expert legal team. Book a consultation to discuss your circumstances.
Stay Informed on Australian Immigration Law
- YouTube: Johnny Kong | Migration Lawyer
- Instagram: @johnny_migrationlawyer
- Facebook: Riverwood Migration
- TikTok: @johnny_migrationlawyer
- Linktree: linktr.ee/johnny_lawyer
