Starting off the new year, it is important that you’re aware of upcoming changes in employment legislation coming into effect and the steps that your business should be taking in preparation.
The four key changes proposed for 2026 are:
Payday Super
From 1 July 2026, businesses will be required to pay superannuation at the same time as wages / salaries. This replaces the current form of paying superannuation in a pay-cycle-aligned approach, whether that be weekly, fortnightly, monthly, or quarterly.
There are some exceptions, including payments to new employees who have a tenure of less than two weeks, and small and irregular payments which occur outside of a normal pay cycle, such as a one-off bonus.
How to prepare now:
- Review your current superannuation processes and payment cycle
- Ensure payroll codes for Single Touch Payroll are audited to ensure accuracy
- Confirm software and clearing house readiness
- Plan your cash flow with your finance team
Gender equality target-setting requirements for large businesses
From April 2026, Australian employers who have 500 or more employees will be required to select and work towards specific gender equality targets. Employers will have to choose three targets from a set list, which comprise of both numerical goals and action-based initiatives.
This change is part of the Workplace Gender Equality Agency’s (WGEA) strategy to address pay inequity, building upon the compulsory publication of gender pay gaps.
Employers who fail to engage in this target setting initiative risk being publicly named by the WGEA.
How to prepare now:
- Gather data to determine where your efforts will have the most impact
- Undertake a comprehensive gender pay gap analysis to identify unique drivers of specific gender imbalance within your workplace
- Utilise public resources on WGEA’s public website to assist in the process, including action planning tools
Changes to paid parental leave
Paid Parental Leave (PPL) over the past two years has been subjected to significant reforms which will continue into 2026.
From 1 July 2026, eligible parents will be able to access up to 26 weeks of government-funded PPL which equates to six months on a standard five-day week. This is an increase from the 24 weeks in 2025 and 22 weeks in 2024.
The amount of leave reserved for each parent in a couple will also have an increase from three to four weeks on a use-it-or-lose-it basis. Single parents will receive the full 26 weeks.
How you can prepare now:
- Review and update your paid parental leave policies to comply with these changes
- Ensure your payroll systems are updated to process the 26 weeks, including superannuation contributions
- Plan and be prepared for longer periods of absence, which may involve employing temporary hires
Outcome of the government’s NES review
A new enquiry was announced in November 2025 to review Australia’s National Employment Standards (NES), which is the first review since the Fair Work Act 2009 was introduced.
The review has been actioned as a result of changes with the rise of the gig economy, widespread remote work, skill shortages, an ageing workforce and shifts in expectations regarding role flexibility and work-life balance.
Potential changes which are already under consideration include:
- An increase in minimum annual leave from 20 to 25 days
- Stronger redundancy entitlements including higher payouts, removal of small business exemptions, and changes which reflect technology-drive job losses (such as AI)
How you can prepare now:
- Keep a watchful eye on the enquiry
- Pre-emptively review current leave accruals, employment contracts and policies to assess your organisation’s exposure
- Ensure managers have a concrete understanding on the organisation’s policies on casual conversion, flexible work requests, redundancy processes and compliance obligations.
If you would like more information or assistance in managing your workforce and compliance with employment legislation, please contact us via the below link.