Australia racing sector hit by wage, super and tax rule changes

Trainers, stud farms and stable operators across Australia had to reset payroll from the first full pay period on or after July 1, after the national minimum wage rose to $1,004.90 a week, or $26.44 an hour, and award minimums increased by 4.75%. Payday Super also began that day, forcing employers to pay superannuation at the same time as wages instead of quarterly, a change that affects racehorse businesses with tight margins and irregular labour costs.

For the racing yards that rely on casual trackwork riders, stable hands and breeding staff, the immediate pressure is timing. The Australian Taxation Office requires employers to calculate, pay and report super guarantee through Payday Super from the date wages are paid, with the minimum super guarantee set at 12% of qualifying earnings. That turns what was once a quarterly obligation into a live payroll task every pay run for trainers, owners and farm managers who already juggle feed bills, vet costs and transport.

More than 67% of Australian breeders are based in regional Australia. Racing Australia's industry study estimates the thoroughbred sector supports 79,100 full-time equivalent jobs nationally, with more than 6,770 active breeders backed by more than 12,700 staff and volunteers. The study estimates the sport’s total value added contribution at more than $9.153 billion.

The 2026-27 Budget made the $20,000 instant asset write-off permanent from July 1 for small businesses, subject to law. In racing, that may help a trainer replace a broken float, a stud buy a new vehicle or a small operation upgrade machinery, but it does not offset the need to fund super immediately.

In 2024, ABC News found that one in four workers missed out on compulsory super, with lower-paid and insecure workers among the most exposed. It also found that many businesses support Payday Super but worry about cash-flow pressure.