Mark looked at the calendar: 1 July. Clean slate day.

"I thought we did all this at EOFY," he said.

"That was for closing out FY26," Tessa said. "This is for opening up FY27. New wages. New super rules. New reporting periods. If I don't get Xero set up properly now, it'll bite us all year."

She was right.

You can't run FY27 payroll on an FY26 setup. Things change. Rates change. Rules change. Rules about when you pay super change.

Here's what's actually different on 1 July 2026 - and what you need to fix in Xero before you start the new financial year.

WHAT'S CHANGED IN FY27

1. Minimum wages went up (again)

From the first full pay period on or after 1 July 2026:

• National Minimum Wage: now $1,004.90 per week ($26.44 per hour)
• Modern award wages: 4.75% increase
• Entry-level rate: $978.10 per week ($25.74 per hour)

If you've got employees on minimum wage or award rates, their pay needs updating. Don't accidentally pay last year's rates all year.

2. Super is paid on payday now (not quarterly)

This is the big one.

Up until 30 June, you paid super quarterly - April, July, October, January.

From 1 July, that changes. You now pay super on the same day you pay wages.

Weekly pay? Super weekly.
Fortnightly? Super fortnightly.
Monthly? Super monthly.

It arrives within 7 business days of pay day, but the obligation is the same day wages go out.

The super rate stays at 12% (that's been the rate since July 2025 and isn't changing), but the timing completely changes.

3. New reporting periods

Your BAS quarters have rolled over. You're now on:

• Q1: July-September 2026
• Q2: October-December 2026
• Q3: January-March 2027
• Q4: April-June 2027

YOUR FY27 XERO CHECKLIST

1. Update financial year dates

Go to Settings > General Settings

Confirm your financial year is set to 1 July 2026 - 30 June 2027.

This sounds basic, but get it wrong and everything else is off.

2. Update payroll wage rates

Go to Payroll > Employees

For each employee:

• Check if they're on minimum wage or award rates
• Update their pay to reflect the new rates
• Note when the new rates take effect (usually the first full pay period on or after 1 July)

3. Check super fund details are current

Go to Payroll > Settings > Superannuation

For each employee's super:

• Fund name correct?
• Member number correct?
• Account name correct?

If super fund details are wrong, the super payment bounces or gets stuck in suspense.

4. Update your super payment method for Payday Super

This is critical. You can't pay quarterly anymore.

Your clearing house or super portal needs to be set up for payday payments (weekly, fortnightly, monthly - whatever your pay cycle is).

If you're not sure if your payroll software supports Payday Super, check with them now. Don't discover on your first pay day that you can't pay super.

5. Confirm your BAS reporting periods

Go to Reports > Tax

Check that your BAS quarters are set up for:

• Q1 July-Sept (due 28 Oct)
• Q2 Oct-Dec (due 28 Jan)
• Q3 Jan-Mar (due 28 April)
• Q4 April-June (due 28 July)

6. Update your maximum super contribution base

For 2026-27, the maximum super contribution base is $270,830.

Once an employee's earnings reach this amount, you stop paying super for them for the rest of the year.

Make sure your Xero settings reflect the new cap (up from $62,500 quarterly to annual).

WHY THIS MATTERS

Get these things wrong and you're paying the wrong super amount, the wrong time, or not at all.

Miss a super payment and you pay the Super Guarantee Charge - that's the shortfall amount, plus interest, plus a $20 admin fee. For every employee, every quarter.

Miss updating wage rates and you're underpaying your staff, which means complaints, compliance issues, and potential backpay claims.

Get your Xero setup wrong in July and you're fighting it all year. Get it right now and FY27 runs smoothly.

YOUR CHECKLIST

Before you run your first pay for FY27, tick these off:

☐ Financial year dates confirmed (1 July 2026 - 30 June 2027)
☐ Employee wage rates updated to reflect minimum wage/award increases
☐ Super fund details checked (fund name, member number, account name)
☐ Super payment method set up for payday (not quarterly)
☐ BAS reporting periods confirmed for Q1 July-Sept, Q2 Oct-Dec, etc
☐ Maximum super contribution base updated to $270,830

Fresh financial year. Fresh setup. Fresh start.

Take an hour to get this right, and it'll save you headaches all year.