1 July cost increases: what goes up at the start of the financial year, and what to buy before it does

For many Australian businesses, 1 July is the most expensive day on the calendar that nobody marks in red. Wages step up, suppliers roll out new price lists, leases and contracts review, and — from 2026 — super moves to a new rhythm. None of it is a surprise, yet every year it catches someone out. Here’s what moves, and how to time decisions around it.

Which costs rise at the start of the financial year?

Cost	What happens	Timing
Minimum and award wages	Annual Wage Review increase	First full pay period on or after 1 July
Superannuation	Payday Super begins (from 2026)	Contributions within 7 business days of each payday
Supplier price lists	Many suppliers review annually	Often 1 July; check your notices
Leases	CPI or fixed reviews tied to the financial year	Per lease terms
Insurance, software, rates	Annual renewals	Often June–August

For the 2026 increase, the Fair Work Ombudsman announced the National Minimum Wage as $1,004.90 a week for a full-time 38-hour week, or $26.44 an hour, with casuals on the minimum wage receiving at least $33.05 an hour including loading.

Inflation matters too: the ABS reported the CPI rose 4.0% in the 12 months to August 2026. Leases and contracts with CPI-linked reviews will reflect movements like that.

How does Payday Super change July cash flow?

From 1 July 2026, super contributions generally need to be received by the employee’s fund within 7 business days after each payday (20 business days for a new employee’s first contribution). The super guarantee remains 12%.

The amount doesn’t change, but the timing does. Businesses used to holding super for up to a quarter now pay it with every pay cycle. That removes a buffer some owners relied on. If you used quarterly super timing to smooth cash flow, July 2026 was the month that changed — and every July after it will start with the same rhythm.

Should I buy ahead of a supplier price rise?

Sometimes. Use this checklist:

• Is the rise confirmed in writing? A rumour isn’t a reason to buy.
• How big is it? A small increase rarely justifies a big stock-up.
• Will you sell or use the stock in a reasonable time? Holding costs eat savings.
• What will it cost to fund? Compare the total finance cost with the saving.

We go through the maths on supplier price increase notices. For equipment, remember the deduction timing: an asset installed in June is claimed this year, one installed in July next year — see buy in June or July?.

Illustrative example: the café group

Illustrative figures only.

A business running two cafés with 14 staff budgets for July in May. It expects:

• a wage increase from the first full pay period in July;
• super paid with each fortnightly pay run instead of quarterly;
• its coffee roaster’s annual price review on 1 July;
• a CPI-linked rent review on one site.

By buying three months of packaging and dry goods in June at the old prices, confirming the new wage rates in the payroll system, and arranging a small working-capital facility to cover July’s heavier outgoings, the owner turns a potential cash squeeze into a planned step. The facility is repaid over the following quarter as prices on the menu are adjusted.

If July looks heavier than your cash buffer, see if you qualify for a facility sized to the gap.

How do I plan for July without overreacting?

A simple May checklist:

1. Update payroll budgets for the new wage rates.
2. Map super payments pay run by pay run under Payday Super.
3. Collect supplier price notices and lease review dates.
4. Decide what’s worth buying ahead, and what isn’t.
5. Review your own prices — your costs are rising, so should some of your prices.
6. Arrange any funding before June’s quarter-end and EOFY rush.

The fifth point is the one owners avoid. If your costs rise every July, your prices usually need to follow. Our EOFY 2027 countdown puts all these dates on a single timeline. If a rising wage bill is part of a hiring decision, read hire now or wait.

Should I raise my own prices in July?

Often, yes — at least on some lines. If wages, supplies, rent and insurance all step up on or around 1 July, holding your prices flat means your margin shrinks from the first pay run of the new year.

Ways to approach it without losing customers:

• Give notice. Tell regular customers a few weeks ahead.
• Be selective. Adjust the products or services where your costs rose most.
• Explain briefly. Customers generally understand that wages and supplier prices have moved.
• Review quotes. Make sure quotes issued in May and June note how long they hold.

Pricing is a timing decision too. Moving in July, alongside your costs, is easier than catching up in October after a quarter of thinner margins. For the wider cost-of-waiting picture, see the cost of delaying business investment.

Make July a plan, not a surprise

If the new financial year’s costs will stretch your cash flow, the time to sort it is May or June, not the week the pay run bounces. Our 60-second enquiry involves no credit check, and your details stay with one team rather than being circulated to lenders. A lending specialist calls you to size the gap properly. Accurate answers about your turnover, staffing and the amount you need make that call far more useful.