Real estate employers are carrying more than ever. Here’s what changes from 1 July

Yet behind those headlines sits another part of the industry that rarely receives the same attention: the thousands of independently owned real estate businesses responsible for employing people, supporting local economies, and helping Australians buy, sell, lease, and manage property every day.

Most aren’t large corporations with specialist legal, human resources, or compliance teams. They are small and medium-sized businesses, many family-owned, balancing commercial realities with an increasingly complex regulatory environment. Like every Australian business, they are navigating rising operating costs, changing market conditions, and growing compliance expectations, all while continuing to invest in their people and deliver for their clients.

It is against that backdrop that 1 July arrives.

For real estate employers, this year’s legislative changes extend well beyond an annual adjustment to award wages. New minimum rates of pay and allowances will take effect, Payday Super will fundamentally change payroll administration, and Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) reforms will introduce new employment obligations for businesses appointing AML/CTF compliance officers.

Each of these deserves attention in its own right. Collectively, they reinforce the importance of ensuring employment systems, documentation, and workplace practices remain current, because in today’s environment, employment compliance has become a fundamental part of running a successful real estate business.

Award wages and allowances

From 1 July 2026, minimum rates of pay and allowances under the Real Estate Industry Award will increase by 4.75 per cent.

While updating payroll systems to reflect new minimum entitlements is the immediate priority, employers should also use this opportunity to review their broader employment framework. Employment agreements, remuneration structures, commission structures, and position descriptions should all be considered to ensure they remain compliant and continue to reflect the way the business operates.

Annual wage reviews are often viewed as a payroll exercise. In reality, they provide a valuable checkpoint for reviewing employment practices more broadly and identifying any areas that may require attention before they become larger issues.

Payday Super

The introduction of Payday Super represents one of the most significant changes to payroll administration in recent years.

Rather than making superannuation contributions quarterly, employers will increasingly be required to process superannuation alongside each payroll cycle. While the financial obligation itself is not changing, the administration surrounding payroll and superannuation will become considerably more frequent.

For real estate businesses, particularly those with weekly payrolls, this will require confidence that payroll systems, software, and internal processes are capable of meeting the new requirements efficiently and accurately.

As with any legislative reform, preparation will be key. Reviewing payroll procedures now will help ensure businesses are well-positioned ahead of implementation.

Commission-only employment

Commission-only employment remains an important and well-established employment model within the real estate profession, providing many high-performing salespeople with the opportunity to maximise their earning potential.

From 1 July, however, employers should also note the increase to the minimum income threshold required before an employee can be engaged under commission-only arrangements. That threshold will increase to $72,938 (gross).

For businesses currently employing staff under commission-only arrangements, this is an appropriate time to review existing agreements and ensure they continue to satisfy the legislative requirements of the Real Estate Industry Award.

Regular reviews of remuneration arrangements provide certainty for both employers and employees while ensuring businesses remain compliant as legislative requirements evolve.

AML/CTF reforms bring new employment responsibilities

Perhaps the most significant change that many real estate employers are still working through is the introduction of Australia’s AML/CTF reforms.

While much of the industry discussion has understandably focused on operational compliance and regulatory obligations, these reforms also have important employment implications.

Every reporting entity will need to appoint an AML/CTF compliance officer, and that appointment carries a range of employment considerations that extend beyond simply assigning a title.

Businesses should be reviewing employment agreements, classifications, pay structures, position descriptions, and internal documentation to ensure the responsibilities of the role are clearly defined. They should also ensure appropriate due diligence has been undertaken in relation to the appointment, together with the governance documentation required to support the role.

For many real estate businesses, this represents an entirely new employment function. Taking the time to establish the role correctly from the outset will place businesses in a far stronger position as the AML/CTF framework continues to evolve.

A timely opportunity to review your employment framework

While each of these legislative changes can be considered individually, together they provide an ideal opportunity for business owners to step back and review the broader employment framework supporting their organisation.

Employment agreements, remuneration structures, payroll systems, position descriptions, workplace policies, and compliance processes should all be reviewed regularly to ensure they continue to reflect both legislative requirements and the practical realities of operating a modern real estate business.

The role of a real estate employer has become increasingly sophisticated over recent years. Today’s business owners are expected to navigate changing employment law, workplace relations, payroll obligations, and now broader regulatory responsibilities, often while leading small teams and continuing to deliver exceptional service to clients.

That makes employment compliance more than an administrative function. It has become an essential part of good business management.

With 1 July within arm’s length, my advice to every real estate employer is simple: don’t treat these reforms as individual compliance tasks to tick off a list. Use them as an opportunity to review the systems, documentation and processes that underpin your business.

That’s precisely why the Real Estate Employers’ Federation (REEF) exists.

As a not-for-profit organisation, our role has never been to add to the complexity of employment law, but to simplify it. We develop practical resources, employment documentation, advice, guidance and compliance tools that give business owners confidence they are meeting their obligations while remaining focused on growing their business.

At a time when the responsibilities of being an employer continue to evolve, peace of mind has become one of the most valuable investments a real estate business can make.

For a little more than the cost of a cup of coffee each day, REEF members have access to the expertise, documentation, and ongoing support needed to navigate employment change with confidence.

Bryan Wilcox is the CEO of REEF.