The Fair Work Commission (FWC) and the Western Australian Industrial Relations Commission (WAIRC) have increased the respective national and state minimum wages by 4.75% from July 1, following their annual wage reviews.
In particular, the FWC has increased the national minimum wage by 6% and modern award wages by 4.75% from July 1.
The increase will affect around 2.8 million employees, or 21.1% of the workforce, including employees covered by the Real Estate Industry Award 2020. The decision lands between union calls for a 6% rise and submissions from the Australian Chamber of Commerce and Industry (ACCI) for a “moderate but reasonable” 3.5% increase, reflecting what the FWC described as a “challenging” economic environment marked by high inflation, rising interest rates and global uncertainty.
“Today’s decisions further delink wage outcomes from productivity, and economic activity will suffer as a result,” said David Alexander, ACCI Chief of Policy and Advocacy.
“For businesses already facing interest rate hikes, high inflation and elevated fuel costs, this decision will only add to the burden.”
ACCI estimates the increase will add around $11.7 billion in costs across the economy.
From the first full pay period on or after July 1, 2026, employers will need to factor in:
While relatively few employees are directly paid the National Minimum Wage, modern awards cover a significant portion of the workforce particularly in sectors such as retail, hospitality, administrative services and real estate.
Key considerations for real estate agencies include:
Real estate businesses with high award reliance particularly in property management divisions are likely to feel the most immediate impact.
Alexander said productivity growth had been “anaemic” for an extended period and is expected to fall back to zero in the middle of 2026. Wage setting must remain disciplined and anchored to productivity realities, he said.
“In an environment of weak and uneven productivity, the economy’s capacity to absorb large, mandated wage increases is fundamentally constrained,” he said.
“The Reserve Bank has cautioned that when productivity is weak and the economy is operating with excess demand, higher labour costs are more likely to flow through to prices rather than be absorbed through efficiency gains.”
For real estate agencies, this may translate to increased pressure on management fees, commissions or cost efficiencies.
The FWC also flagged ongoing structural reforms aimed at addressing gender-based undervaluation in modern awards.
Targeted wage increases for female-dominated industries, including care, health and related professions will continue to be phased in over coming years, alongside further reviews of professional classifications.
“While the increase will provide some relief to low-paid workers, it also highlights the ongoing tension between cost-of-living pressures and economic constraints,” said Business Law WA’s Legal Director, Workplace Relations, Laura Fry.
“For employers, the priority will now shift to ensuring compliance, managing cost impacts, and preparing for continued wage pressures as the economic environment evolves.”
Employers who are covered by the WA State Industrial Relations System include:
The WAIRC determined employees who are 21 and older will be entitled to a minimum of $998.30 per week or $26.27 per hour, from the first full pay period on or after 1 July 2026. Younger workers and award free trainees and apprentice will also receive increases to the minimum wages.
From July 1, 2026, businesses will need to ensure they are meeting the new minimum wage requirements.
Written By Andjelika Cabassi – Senior HR & Workplace Relations Consultant.
CCIWA, Business Law WA and REEFWA has taken all reasonable care in preparing this document. The contents of this document do not constitute legal advice and should not be relied upon as such. Specific advice for your situation should be sought from CCIWA, Business Law WA or a professional adviser before any action is taken. Neither REEFWA, CCIWA nor Business Law WA accept responsibility for any claim that arises from any person acting or refraining from acting on the information contained in this document.
“REEFWA are an exceptional corporate body that provides real time advice, advocacy and detailed information on all industrial relations matters pertaining to our industry. They operate with professionalism and personal service. Beneficially for you, they have a broad range of highly experienced personnel that work in the industry and offer years of knowledge.”
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