Media Release: Minimum Wage Hike and Super Set to Hit Business Cashflow

CHAMBER NT BUSINESS NEWS

2 June 2026

The Northern Territory Chamber of Commerce and Industry (Chamber NT) is warning Territory businesses to carefully plan for significant changes to payroll costs coming into effect from 1 July 2026, with serious implications for cashflow, particularly for small and medium sized enterprises.

This follows today’s disappointing Fair Work Commission decision to increase awards wages by 4.75 per cent and the minimum wage by 6 per cent from 1 July 2026.

Businesses must now prepare to manage broader payroll related reforms, including increased superannuation liabilities and changes such as Payday Super, which will fundamentally shift the timing of employer obligations and cashflow management.

Chief Executive Officer Glen Hingley said the combined effect of these changes comes at a particularly challenging time for Territory businesses already facing a “perfect storm” of economic pressures.

“Northern Territory businesses are robust, but the reality is many are already under sustained pressure from inflation, rising interest rates, and significant cost increases, particularly as a result of global fuel price shocks linked to instability in the Middle East,” Mr Hingley said.

“Layering additional payroll costs, alongside changes to when those payments must be made, will create further strain, especially for small and medium sized businesses operating on tight margins.”

The Chamber said that while wage increases are intended to protect workers from cost of living pressures, the cumulative impact on business must be recognised.

The Australian Chamber of Commerce and Industry, which represents employers nationally, had advocated for a more moderate 3.5 per cent increase.

ACCI Chief of Policy and Advocacy David Alexander said the proposed increase was intended to strike the right balance.

“We considered this to be responsible, fair and proportionate,” Mr Alexander said.

“Today’s decisions further delink wage outcomes from productivity, and economic activity will suffer as a result.”

“For businesses already struggling with interest rate hikes, high inflation and high fuel prices, this increase in wage costs will only add to the burden.”

ACCI estimates the decision will impose an economy wide cost of around $11.7 billion and has also expressed disappointment at the reclassification of the lowest incomes to include an additional increase to minimum wages not linked to productivity.

Chamber NT stands with ACCI in its concern about what these combined cost increases may mean not only for individual businesses, but for the broader economy.

“This is not about opposing wage growth, it is about understanding the cumulative impact of multiple cost increases hitting businesses all at once, and the broader implications for productivity and inflation,” Mr Hingley said.

“When you combine wage rises, superannuation increases, fuel and freight costs, higher borrowing costs, and weakening consumer demand, the pressure on business viability becomes very real.”

The Chamber emphasised that small and medium sized businesses are particularly exposed, with less capacity to absorb sudden increases in operating costs compared to larger organisations.

“In the Northern Territory, these pressures are amplified by distance, supply chain challenges and seasonal economic conditions. Decisions made at a national level are often felt harder and later here,” Mr Hingley said.

Businesses are being encouraged to review payroll systems, reassess cashflow planning, and seek advice to ensure they are prepared for the upcoming changes.

The Chamber reaffirmed its commitment to advocating for practical, balanced policy settings that support both employees and the sustainability of businesses across the Territory.

“We will continue working with ACCI and all levels of government to ensure the voice of Territory business is understood and the unique challenges we face are supported,” Mr Hingley said. “Furthermore, business owners and managers can reach out to Chamber NT for clarity on the changes.”