The minimum wage to rise to over $1000 per week on July 1, after the Fair Work Commission agrees the biggest rise since 20203

The Fair Work Commission has approved a 4.75% minimum wage increase for about 3 mln workers. But those at the very bottom will get an even higher increase of about 6.0%. This National Minimum Wage applies only to people in the national industrial relations system who are not covered by a modern award or an enterprise agreement. This will take their minimum to AU$26.44/hr for a 38 hr week.

The new rates will become effective on July 1, 2026.

This 2026 change is larger than the 3.50% increase in 2025 and the 3.75% increase in 2024, but smaller than the 5.75% increase in 2023.

The ACTU claimed 6.0%.

The decision will also have a large impact on industries more reliant on awards, including health care and social assistance, retail trade, accommodation and food services, and administration and support services (which includes of labour hire workers).

Analysts say that even though it is higher than expected it will not add substantially to inflation. They calculate that the wage price index might rise as little as +0.1% to the Q3-2026 results. However, if this increase flows through the more general Enterprise Bargaining Agreements, then the inflationary impulse could be greater. But the expected gradual easing of the labour market as the economy slows, then that will restrain  the flow-through.

Fair Work Commission