From 1 July 2026, Australia's minimum award wages have increased by 4.75%, bringing important changes for employers across the agricultural sector.

While a wage increase might seem straightforward, it's also the perfect opportunity to review your employment practices and ensure your business remains compliant.

When Do the New Rates Apply?

The new award rates don't necessarily start on 1 July for everyone.

Instead, they apply from the first full pay period that starts on or after 1 July 2026.

For example, if your payroll runs Monday to Sunday, and 1 July falls on a Wednesday, the new rates won't apply until the following Monday when the next pay period begins.

What Does This Mean for Agribusiness Employers?

For businesses covered by the Pastoral Award or the Horticulture Award, the 4.75% increase affects more than just hourly rates.

You should also review:

• Award classifications
• Allowances
• Salaries paid under annualised salary arrangements
• Employment contracts
• Payroll systems

It's important to ensure every employee is being paid correctly under the updated award.

Don't Overlook Annualised Salary Requirements

Many agribusinesses choose to pay salaried employees rather than hourly rates under the Pastoral Award or Horticulture Award. While this can simplify payroll, these arrangements come with strict compliance obligations.

If you're paying an annualised salary, you must:

• Keep accurate records of start and finish times, as well as unpaid meal breaks.
• Reconcile the employee's salary against what they would have earned under the award at least annually.
• Pay any shortfall if the employee would have been entitled to more under the award.
• Ensure employment contracts clearly explain how the annual salary has been calculated and what award entitlements it covers.

These requirements are often overlooked and can expose employers to unnecessary risk if they're not followed correctly.

Free Annualised Salary Calculator

Calculating an annualised salary under the Pastoral Award or Horticulture Award isn't as simple as multiplying an hourly rate by 38 hours a week. You need to consider ordinary hours, overtime, penalty rates, allowances and ensure the employee will always be better off overall.

To help, we've created a free Annualised Salary Calculator specifically for agribusiness employers.

The calculator helps you:

• Estimate a compliant annual salary based on expected hours.
• Understand how award entitlements contribute to the salary calculation.
• Create a starting point for compliant employment contracts.
• Reduce the risk of underpayments and annual reconciliation surprises.

Click here to download your free Pastoral Award Annualised Salary Calculator and take the guesswork out of award compliance.

Your Compliance Checklist

A quick review now can save significant time and cost later.

Ask yourself:

• Are your employees correctly classified under the relevant award?
• Have all pay rates and allowances been updated?
• Do your employment contracts meet the award requirements for annualised salaries?
• Are your payroll records and timesheets accurate and up to date?
• Have your HR policies been reviewed to reflect the latest award changes?
• Have you communicated the changes to your team?

Need a Hand?

Award compliance isn't just about increasing pay rates. It's about making sure your employment contracts, payroll systems and HR documentation all work together to protect your business.

At The Lucas Group, we work with agribusinesses across Australia to develop compliant employment contracts, help review remuneration structures and provide practical HR advice that keeps employers ahead of changing workplace legislation.

If you're unsure whether your business is meeting its obligations, we'd be happy to help.