The new financial year brings several important wins for working people. Here are some of the changes taking effect from 1 July 2026 that the union movement helped achieve.
Payday super
The superannuation guarantee (SG) increased to 12% last financial year. This year, payday super comes into effect – employers are required to pay super into employees’ accounts within seven business days of payday, instead of making quarterly payments.
Payday super will boost retirement savings because contributions are invested sooner, allowing returns to compound earlier. It also makes unpaid super easier to detect and reduces the risk of working people losing insurance linked to inactive super accounts.
Superannuation has always been union business. The IEU was a partner in setting up industry fund NGS Super in 1986, with the aim of members enjoying a dignified and comfortable retirement.
Australia now has the world’s fourth-largest pool of retirement savings at $4.5 trillion.
It is projected that Australian retirement assets will surpass the UK in 2030 and Canada by 2031 and which will then make us second only to the US.
Thanks to compulsory super, Australia spends just 2.4% of GDP on public pensions, well below the OECD average of 9.3%.
This is a win-win for both working people and for the country. Read more about payday super.
Pay rises for Catholic systemic support staff
On the first full pay period after 1 July, support staff in Catholic systemic schools (excluding Broken Bay Diocese) will receive a well-deserved 3% pay increase.
Support staff in the Broken Bay diocese will receive their pay rise in October. They can also expect to receive a one-off cost of living adjustment payment after 1 July in line with the Broken Bay enterprise agreement.
Members will recall the IEU’s long fight for pay parity with support staff in government schools. These pay rises are a reminder that better pay doesn’t happen by accident. It is won through collective bargaining and union membership. Encourage your support staff colleagues to join the IEU.
Annual wage review
The Fair Work Commission (FWC) reviews the minimum wage and modern award wages every year. On 2 June, the FWC announced an increase of 4.75% to modern award wages and 5.97% to the minimum wage.
This outcome closely reflected the ACTU’s submission on behalf of the union movement.
Most IEU members are covered by enterprise agreements that deliver higher pay and better conditions than modern awards.
There are about 100,000 workers in Australia on the minimum wage. From 1 July, full-time workers on the minimum wage will now be paid $1004 per week.
Improved paid parental leave scheme
The increase to the minimum wage will also have a much-welcomed impact for IEU members accessing the federal government’s paid parental leave scheme which will also increase from 24 to 26 weeks.
Eligibility depends on work and income tests. If you’re unsure, contact your IEU organiser.
Superannuation is also paid on the government’s paid parental leave scheme (this was introduced in 2025). Measures such as this help to reduce the gender retirement income gap.
Tax time
Union fees are fully tax-deductible – they are a legitimate work-related expense.
Need a record of your fees? Contact the IEU’s membership team on 8202 8900 (press 1) or membership@ieu.asn.au