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From 1 July 2026, medical practices across Australia will see a meaningful increase in minimum staff wages, and if you employ reception, admin or nursing staff, this change will directly impact your payroll.
The Fair Work Commission has handed down its 2026 Annual Wage Review, confirming a 4.75% increase to minimum Award wages. While welcome news for employees, it means practice owners need to act now to ensure compliance and avoid unexpected cost pressures.
Which health professionals are affected?
Most practices will be impacted – particularly where staff fall under:
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Health Professionals and Support Services Award 2020 (sets minimum terms for health industry employees, including health professional employees such as physiotherapists and psychologists, as well as administrative, reception and support staff)
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Nurses Award 2020 (sets minimum terms for registered nurses, enrolled nurses and assistants in nursing)
Minimum base rates of pay are legally required for employees covered by these health services Awards. If your team are covered by these Awards this change applies to you.
When do the new rates apply?
The increase takes effect from the first full pay period starting on or after 1 July 2026.
That’s an important detail. It’s not strictly tied to 1 July itself, it depends on your payroll cycle. For example:
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Weekly pay cycle starting Wednesday 1 July → new rates apply immediately
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Weekly pay cycle starting earlier in the week → new rates apply from the next pay period
If you’re unsure, this is worth confirming with your payroll team or advisor now.
What are the proposed changes?
At a high level, minimum Award wages will increase by 4.75%. However, there are also updated minimum thresholds to be aware of:
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Minimum ongoing employment rate: $1,004.90 per week or $26.44 per hour
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Entry-level (first 6 months or less): $978.10 per week or $25.74 per hour
These thresholds ensure that even the lowest Award classifications meet a baseline level of pay.
Why this matters for your practice.
For many practices, wage costs are already one of the largest overheads and this increase will have a direct flow-on effect to your bottom line.
But beyond cost, there’s also a compliance obligation. Awards are legal instruments, and failing to implement the updated rates correctly can expose your practice to:
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Backpay liabilities
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Penalties
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Reputational risk
This is particularly relevant in healthcare, where employment conditions are under increasing scrutiny from many external parties.
What you should do now.
With 1 July approaching, there are a few practical steps worth taking:
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Review your Award classifications: ensure each employee is classified correctly under the relevant Award, and flag roles that may be affected by future changes to the classification structure.
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Check current pay rates: identify who is affected and how the increase applies.
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Update payroll systems: plan for implementation of new rates ahead of your first applicable pay run.
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Revisit budgets and forecasts: factor in the increased wage cost across the year.
If you employ a mix of admin staff and nurses you need to consider both Awards.
A broader shift in workplace expectations.
This wage increase reflects a broader trend – rising cost of living pressures, ongoing workforce shortages, and a push to better support healthcare workers.
Workforce expectations are also being shaped by proposed Award reforms affecting support services employees, including a new structure and support services classification structure, not only annual wage increases.
For example, dental assistants have recently been reclassified under new criteria as part of the revised classification framework, with new classifications depending on experience and qualifications.
For practice owners, it’s a timely reminder to balance compliance with retention. Competitive pay, clarity around conditions, and a structured approach to remuneration are becoming increasingly important in attracting and keeping quality staff.
The takeaway and further information.
The 1 July wage increase is an administrative, compliance, cost, and workforce planning issue rolled into one. Getting ahead of it now will put your practice in a stronger position for the new financial year.
For further information or further details on the Fair Work Commission process, keep an eye on the Fair Work Commission draft determination and upcoming award updates.
Need help reviewing your Awards, payroll setup or staffing structure? Our team of award-winning experts are ready to assist you and your practice. With over 70 years of experience, we've been trusted by medical professionals for decades.
Jodie Walshe is a Partner at Cutcher & Neale with almost 20 years of experience. Beginning her career as a trainee, she was the firm’s first female Partner to have followed that path. Known for her genuine and caring approach, Jodie builds long-term relationships with clients across generations, providing trusted advice that supports their goals and success.
