Want to ensure your business is aware of the latest employment law updates? Our expert team provides regular insights into key changes from federal and state authorities, including the Fair Work Act and WHS regulations.
Following a period of significant reform, 2026 will mark a year of equally significant change to Australia’s workplace legislation.
With rollouts that’ll impact everything from payroll to broader workforce planning, consider the following breakdown a simplified compliance digest.
It’s all about Payday Super
Active from: 1 July 2026
Aside from the Modern Awards increase, the headlining change on everybody’s mind is Payday Super. And at long last, it’s almost upon us.
From July 1st, businesses must ensure superannuation contributions are paid on the same basis as wages or salaries (replacing the current quarterly payment model).
Under Payday Super, contributions are required to reach an employee’s fund within seven business days of payday, with the aim of not only improving retirement savings through quicker and more frequent compounding – but also reducing the risk of missed payments and improving visibility for employees.
The first super contribution for a new employee, however, needs to be made within 20 business days of salary/wages being paid.
Following the final increase effective 1 July 2025, the super guarantee currently sits at 12% of an employee's qualifying earnings (QE), which is a new term that consolidates the familiar ordinary time earnings (OTE) with other payments, i.e. salary sacrifice contributions, commissions, and independent contractor earnings.
In terms of proposed penalty changes, the current measures involving effective maximum penalties of up to 200% the super guarantee charge (SGC) will be replaced with a tiered framework: additional penalties of generally 25% or 50% of the unpaid SGC may apply, depending on an employer’s compliance history and prior offences.
Paid parental leave continues to improve
Active from: 1 July 2026
Australia mightn’t be in the same league as Sweden or Japan just yet. But it’ll work towards those lofty standards this year when the government-funded allowance of paid parental leave (PPL) improves from 24 weeks to 26 weeks.
The amount of shared care leave reserved for each eligible parent in a couple will also be increased from three to four weeks on a “use it or lose it” basis, to encourage a better distribution of carer responsibilities, starting from July 1st (superannuation included).
For reference, the maximum paid parental leave was 22 weeks back in 2024. Prior to this three-year policy effort, PPL in Australia had essentially been frozen at 20 weeks for over a decade, with pundits expressing concerns that the country is once again at risk of “drifting into another lost decade” in parental leave reform.
New gender equality targets
Active from: 1 April to 31 May 2026 (private sector) | 1 September to 31 October 2026 (public sector)
Due to recent amendments in the Workplace Gender Equality Act 2012, Australian businesses with 500 or more employees are now required to nominate and work towards specific gender equality targets.
Announced by the Workplace Gender Equality Agency (WGEA) last year, these reforms impact almost 2,000 employers, who must choose three objectives from a prescribed list of numerical and action-based initiatives.
Gender equality targets may relate to flexible work conditions, pay equity, promotion opportunities, improving representation amongst the ranks, or sexual harassment safeguards. At least one initiative must be numerical, and once selected, employers have three years to meet/make meaningful progress.
While this reform is explicitly aimed at large organisations, it exists within the WGEA’s wider push to influence Australian workplace practices as a whole.
The hope is that it’ll lead to greater pay gap transparency, greater employer accountability to actually address inequality, as well as constructive scrutiny of fair and inclusive workplace policies.
This currently applies to the private sector, effective from April 1st, with the public sector to follow later this year.
Flexible working arrangements
Expected start: 1 September 2026 (subject to legislation passing)
A combination of legislation changes and Fair Work Commission decisions has enhanced an employee’s ability to obtain flexible working arrangements, i.e. partial or full-fledged remote work (also referred to as “working from home”), adjusted start and finish times/rostering, compressed hours, job sharing, time off in lieu, etc.
In addition to the recent Fair Work Act 2009 amendments, which widened the scope for who may qualify, the Victorian government has proposed laws that would give employees a right to work from home for at least two days a week where their duties can reasonably be performed remotely, subject to specific exceptions and business needs
These proposed measures are targeting a start date of 1 September 2026 for most businesses operating in Victoria; while businesses with an employee headcount below 15 would have a delayed start date of 1 July 2027. If it proves to be successful, there’s every chance it could be adopted by other states and territories.
Currently, under the Fair Work Act 2009, any employee can informally ask for flexible working arrangements, but only certain categories of employees have a formal legal right to request flexible work that triggers specific employer obligations and response timeframes.
These include permanent employees who’ve worked for at least 12 months, and casual employees who’ve worked “regularly and systematically” for at least 12 months with a “reasonable expectation of continuing doing so.”
The request must also be due to an employee fulfilling any of the following criteria:
- Pregnant
- Parent of (or responsible for caring for) school-aged children and younger
- Carer (within the meaning of the Carer Recognition Act 2010)
- Person with disability
- Aged 55 or older
- Experiencing family and domestic violence, or providing care/support to an immediate family member/someone they live with experiencing family and domestic violence
If a state or territory law outlines a better entitlement to flexible working arrangements, however, then it applies. Hence, the Victorian government’s push.
A long-awaited outcome for NES review
Active from: Expected 2026
While outcomes are still pending, commentators and industry groups expect the review may result in changes to core employment standards, following the launch of the inquiry in November 2025 – the first comprehensive review of the National Employment Standards (NES) since the Fair Work Act 2009 was first introduced.
This could result in drastic legislative changes – such as increasing annual leave entitlements and capping maximum weekly hours – with potential considerations to address the removal of small business exemptions, AI-driven job losses, and even higher redundancy payouts.
For the uninitiated, the NES outlines guaranteed minimum terms and conditions for all national system employees, along with modern awards. This safety net of terms and conditions underpins the bargaining system and serves a crucial role in the Australian workplace relations system.
Spearheaded by the House of Representatives Standing Committee on Employment, Workplace Relations, Skills, and Training – and arising from the 2022 Jobs and Skills Summit – this commitment will consider whether the NES continue to meet the needs of workers, employers, and the broader economy.
As alluded to earlier, the full scope/content of this review has yet to be officially publicised. Though we do know what this inquiry won’t focus on, given that they were either recently examined or are currently scheduled for a standalone effort: flexible working arrangements, casual employment, parental leave, along with family and domestic violence leave.
A ban on (most) non-competes
Active from: Expected 2027
After much discussion, the “far-reaching” spectre of non-compete clauses – along with various post‑employment restrictions – is being eyed for significant reform, with the Treasury finalising policy details as we speak.
Under the proposed legislation, non‑compete clauses would be prohibited for workers earning under the current “high‑income threshold” of $183,100 (the same benchmark for the Fair Work Commission’s unfair dismissal eligibility).
Employers would also face new limits on no‑poach and other anti‑competitive arrangements.
According to a survey of 4,900 employers conducted by the Australian Bureau of Statistics, approximately 21% of respondents reported that they relied on non‑compete clauses (particularly in finance, insurance, and real estate). Meaning this could have a significant impact on the domestic professional workforce.
Also read:
- How To Avoid Unfair Dismissal Claims in Australia (Employer’s Guide)
- NZ Employment Law: What You Need To Know
- UK Employment Law: What You Need To Know
- NDIS Worker Screening Check Guide For Employers
- Where NDIS Providers Are Most Exposed Right Now
- Paid Parental Leave In Australia Gets An Update From July 1
- Australia's Minimum Wage Guide
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