When the award rate moves, the cost of supplying a guard moves with it.
For security operators, that means this is not just a payroll update. It is a pricing, records and compliance check.
If you employ guards under the Security Services Industry Award (SSIA), the Fair Work Commission (FWC) wage increase from 1 July 2026 should trigger more than a quick change in your payroll software. You need to check the rate, the classification, the on-costs, the client charge rate, and the records that show how you arrived at that figure.
That last part matters, especially if you operate in Victoria and hold, or may need, a Labour Hire Authority (LHA) licence.
What this article covers
This article looks at:
• What is changing from 1 July 2026
• When the new rates apply
• What security operators should check
• How to think about a basic charge rate calculation
• What Victorian labour hire providers should keep in mind
This is not a full labour hire article. That topic deserves its own space. This one is mainly about the wage increase and what it means for security pricing and records.
What is changing from 1 July 2026
Each year, the Fair Work Commission reviews the National Minimum Wage and minimum award wages.
For 2026, minimum award wages increase by 4.75%. For security operators, the key award to check is usually the Security Services Industry Award (SSIA), depending on the work being performed and the employment arrangement.
The important wording is this:
The increase applies from the first full pay period starting on or after 1 July 2026.
That does not always mean every employee’s new rate applies from the first hour of 1 July. If your pay period starts before 1 July and finishes after it, the new rate may apply from the next full pay period. If your pay period starts on 1 July, it may apply from that date.
Plain version: check your pay cycle before assuming the exact start date.
The actual rate also depends on the details, including:
- Employee classification
- Casual, part-time or full-time status
- Ordinary hours
- Shift type
- Weekend or public holiday work
- Overtime
- Allowances
So, do not just type “+ 4.75%” and call it done. Check the actual Fair Work rate that applies to the role and shift.
Why this matters for security operators
The award rate is not the client charge rate.
That sounds obvious, but plenty of security pricing problems start because an operator looks at the hourly wage, adds a few dollars and hopes the job still works.
That is not a pricing model. That is gambling with a roster.
The wage rate is only the starting point. Once the award rate increases, other parts of the cost can move with it or sit around it.
Depending on your business and the employee arrangement, you may need to consider:
- Casual loading
- Penalty rates
- Overtime
- Allowances
- Superannuation
- Workers compensation
- Payroll tax, where applicable
- Portable long service leave, where applicable
- Leave accruals for permanent employees
- Insurance
- Uniforms
- Supervision
- Rostering and admin time
- Compliance systems
- Profit margin
If your existing client rate was already tight, the wage increase may expose the problem. The business might still be busy, but busy does not mean profitable.
The simple base calculation
You do not need to be an accountant to understand the basic idea.
A sensible security charge rate usually starts with this chain:
Award wage rate
plus employment on-costs
plus business overheads
plus margin or profit
equals minimum sensible charge rate
That is not a full accounting model, and it is not financial advice. It is a practical business check.
Start with the correct award rate. Then ask what it actually costs the business to employ and supply that person.
For example, once you have confirmed the correct SSIA rate for the employee, you would usually look at the employment on-costs that apply to your business. That may include superannuation, workers compensation, payroll tax if you are over the threshold, portable long service leave if it applies, and any other employment-related costs.
Then you need to allow for business overheads. This is the part many new operators forget.
Someone has to manage rosters, answer client calls, handle payroll, maintain documents, deal with incidents, update records, pay insurance, organise uniforms, supervise staff and keep the business alive. None of that is free, even if the owner is doing it after dinner with a laptop and a mild headache.
Finally, the business needs a margin. If there is no margin, there is no buffer. If there is no buffer, one underpaid invoice, one incident, one payroll correction or one quiet month can hurt.
What operators should check now
Before the new rates apply, security operators should check:
- Fair Work Commission Annual Wage Review decision
- The current Fair Work pay guide and the Pay and Conditions Tool
- The correct Security Services Industry Award (SSIA) classification and allowance rates
- Whether each worker is casual, part-time or full-time
- Ordinary hours, penalties and overtime
- Allowances, including site or role-specific allowances
- Payroll system settings
- Superannuation settings
- Workers compensation assumptions
- Payroll tax assumptions, where applicable
- Portable long service leave assumptions, where applicable
- Client charge rates
- Existing contracts and price increase clauses
- Subcontractor or labour hire rates
- Rosters and site instructions
- Payroll and invoice records
- Cash flow and financial viability
The point is not to panic. The point is to check the chain before it breaks.
Labour hire impact: do not leave your records until renewal week
For Victorian security operators who hold, or may need, a Labour Hire Authority (LHA) licence, wage increases should be treated as part of broader compliance readiness.
This does not mean every wage increase turns into a labour hire crisis. It means your records need to make sense.
The LHA may require information or supporting documents during application, renewal, annual reporting or other licence transactions. Operators should be ready to show compliance with relevant laws, financial viability and appropriate business records where applicable.
That can include records connected to:
- Pay rates
- Rosters
- Worker classifications
- Payroll
- Superannuation
- Invoices
- Contracts
- Workers compensation
- Tax registrations, where applicable
- Financial information
- How client rates were calculated
From 1 June 2026, Victoria’s labour hire changes place more focus on suitability, compliance with relevant laws and financial viability.
In simple terms, if you are supplying labour, charging clients and paying workers, your numbers need to tell a believable story.
If the client charge rate is too low to properly pay wages, meet on-costs, cover overheads and leave a margin, that is not just a pricing issue. It can become a compliance and viability issue.
Common mistakes
A folder full of policies does not run a security business. The same applies to pricing. If the spreadsheet says the job makes money but the wage rate, on-costs and penalties have not been updated, the spreadsheet is only giving you false comfort.
Common mistakes include:
- Using old award rates after the new rates apply
- Forgetting the first full pay period rule
- Updating wages but not reviewing client rates
- Ignoring penalties, overtime and allowances
- Pricing from the base hourly rate only
- Forgetting employment on-costs
- Not checking subcontractor or labour hire arrangements
- Keeping poor payroll and invoice records
- Waiting until renewal or audit time to organise financials
None of these are rare problems. They are ordinary business problems that become serious when nobody checks them early.
How GuardHERE sees it
A security business does not become compliant because the owner saw a Fair Work update online.
It becomes reliable when the rates are checked, the payroll system is updated, the client pricing is reviewed, and the records can back up the story.
This is where operators need to be honest with themselves. If your business model only works because wages, penalties, on-costs or admin time have been underestimated, the model does not really work.
That does not mean every contract needs to be thrown out. It means each operator should understand what they are charging, what they are paying and what they are keeping.
The key point
The FWC wage increase is a trigger to check the whole chain:
Award rate. Payroll. On-costs. Client pricing. Labour hire records. Financial viability.
If those pieces line up, the business is in a stronger position. If they do not, it is better to find out before the client, regulator, accountant or payroll error does it for you.
In Summary
If you are reviewing your security charge rates, business documents or compliance records after the FWC wage increase, GuardHERE Consulting can help turn the requirements into practical checks, templates and business-ready documents. Just visit the contact page and get in touch.
This article provides general information only and is not legal, financial, employment, tax or safety advice. Operators should check the current requirements that apply to their business, licence, state or territory, and seek professional advice where needed.