2026 is one of the busiest years for workplace law reform in recent memory. Three of the changes — payday super, the expansion of paid parental leave, and the annual wage increase — all land on 1 July 2026. Others are phased in across the year or still working through Parliament.
This guide pulls the changes together in one place, explains what each one means in practice, and points you to the detailed resources for the ones that need the most preparation. If you only read one section, make it payday super — it changes how you run every pay cycle. Connected rostering and payroll software makes most of these changes far easier to absorb.
What's changing in 2026 at a glance
- Payday super (1 Jul 2026): super paid every pay run, received by the fund within 7 business days
- Paid parental leave (1 Jul 2026): rises to 130 days (26 weeks), with 4 weeks reserved per parent
- Wage increase (1 Jul 2026): award rates up 4.75%, national minimum wage to $26.44/hr
- Gender equality targets: employers with 500+ staff select 3 WGEA targets
- On the horizon: non-compete ban (proposed 2027), NES review, tighter payroll compliance
1. Payday super starts 1 July 2026
This is the change with the widest reach because it touches every employer and every pay run. From 1 July 2026, the quarterly super model ends. You must pay super guarantee contributions for each payday, and the money must be received by the employee's fund within seven business days of payday. The 12% SG rate does not change — only the timing and the way contributions are calculated.
Super is now calculated on a new measure called qualifying earnings, which brings together ordinary time earnings and certain other payments. The ATO's Small Business Superannuation Clearing House is also closing, so affected employers need an alternative SuperStream-compliant solution before 1 July.
What to do: Confirm your payroll software is payday-super ready before 30 June, review cash flow now that super leaves your account every cycle, and transition off the clearing house. The payday super employer checklist walks through all ten steps, and our free payday super e-guide gives you a printable overview.
2. Paid parental leave expands to 26 weeks
From 1 July 2026, government Paid Parental Leave increases to 130 days (26 weeks) for children born or adopted on or after that date, up from 120 days (24 weeks). The payment is still made at the national minimum wage rate, and it now attracts 12% superannuation paid by the ATO.
The bigger structural change is shared care. For couples, 20 days (4 weeks) are reserved for each parent on a use-it-or-lose-it basis — if one parent does not take their reserved days, those days are lost rather than transferred. Single parents can access the full 130 days, and couples can take up to 20 days of leave concurrently.
The payment is funded by Services Australia, not the employer, but you still administer the request, plan coverage, and manage the return to work. One detail worth flagging to staff: if they lodge a pre-birth claim before 1 July 2026, their balance starts at 120 days and Services Australia adds the extra 10 days once they provide proof the child arrived on or after 1 July.
What to do
Update your parental leave policy and templates to reference 26 weeks and the reserved days, and brief managers on the shared-care rules so they can answer questions. Our parental leave management guide has the full process, key dates, and FAQs.
3. Award rates and the minimum wage rise on 1 July
The Fair Work Commission's 2026/27 annual wage review lifts all modern award minimum rates by 4.75% from the first full pay period on or after 1 July 2026, and raises the national minimum wage to $26.44/hr ($1,004.90/week). Any classification that would still fall below the new floor is automatically lifted to it.
Missing the effective date is an underpayment, so the rates need to be in your system before the first July pay run. Businesses using award interpretation software get the increase applied automatically once the official pay guides are published. The full detail, including the casual loading numbers and the extra aged-care increases from 1 August, is in the award rate changes guide, and our free wage growth & award trends e-guide tracks the longer-term trend.
4. Gender equality targets for employers with 500+ staff
Under the Workplace Gender Equality Agency (WGEA) framework, employers with 500 or more employees must select three gender equality targets — at least one of them numeric — from a prescribed menu when they lodge their Gender Equality Report in the April–May 2026 window. They then have a three-year cycle to meet or show improvement against each target, or risk being publicly named by WGEA.
Most small and mid-sized businesses sit below the 500-employee threshold and aren't directly captured. But the direction of travel is clear, and the underlying expectation — measurable, documented progress on pay equity and workforce composition — is worth getting ahead of regardless of headcount.
5. On the radar: reforms still developing
Several changes aren't fully in force yet but should shape your planning:
- Non-compete ban (proposed 2027): the government plans to ban non-compete clauses for low- and middle-income workers. Audit your employment contract clauses now and lean on confidentiality and non-solicitation terms instead of broad restraints.
- Flexible work requests: requests must be assessed on their individual merits through genuine consultation — blanket policies won't satisfy the test. See how to respond to flexible work requests correctly.
- Redundancy and redeployment: recent case law expects broader redeployment analysis across the whole organisation before a redundancy is finalised, with the consideration documented.
- National Employment Standards review: a parliamentary inquiry is examining the adequacy of the National Employment Standards — no change yet, but potential reform to core minimum conditions down the track.
- Tighter payroll compliance: set-off clauses can't retrospectively balance award entitlements, so accurate records and defensible pay calculations matter more than ever.
Action checklist for 2026
- Confirm your payroll system is payday-super ready before 30 June and move off the Small Business Superannuation Clearing House
- Review cash flow for the shift from quarterly to per-pay-run super payments
- Update award rates and the minimum wage before the first full pay period on or after 1 July 2026
- Refresh your parental leave policy for 26 weeks, reserved days, and 12% super on PLP
- If you employ 500+ staff, select and document your three WGEA gender equality targets
- Audit non-compete and restraint clauses ahead of the proposed 2027 ban
- Tighten record-keeping so pay calculations are accurate and defensible
Accurate hours feed accurate pay and super. RosterElf rostering and time-tracking keeps your timesheets, award interpretation, and leave records aligned so the 2026 changes are easier to absorb.
Start free trialFrequently asked questions
What are the biggest employment law changes for Australian employers in 2026?
The three changes affecting the most employers from 1 July 2026 are payday super (superannuation paid with every pay run instead of quarterly), the expansion of government Paid Parental Leave to 130 days (26 weeks), and the annual wage review increase of 4.75% to modern award rates. Employers with 500+ staff must also select WGEA gender equality targets, and reforms to non-compete clauses and the National Employment Standards are under way for later years.
When does payday super start and what changes?
Payday super begins 1 July 2026. From that date employers must pay super guarantee contributions for each payday rather than quarterly, and the contribution must be received by the employee's fund within seven business days of payday. The SG rate stays at 12% — only the timing and the way earnings are calculated change.
How much paid parental leave is available from July 2026?
For children born or adopted on or after 1 July 2026, families can access 130 days (26 weeks) of government Parental Leave Pay, up from 120 days (24 weeks). For couples, 20 days (4 weeks) are reserved for each parent on a use-it-or-lose-it basis, and PLP now attracts 12% superannuation. Single parents can access the full 130 days.
Which employers must set gender equality targets in 2026?
Employers with 500 or more employees must select three gender equality targets (at least one numeric) from the WGEA targets menu when they lodge their Gender Equality Report. Private sector employers select targets in the April–May 2026 reporting window and must demonstrate progress over a three-year cycle or risk being named publicly by WGEA.
Is there a non-compete ban coming?
The federal government has announced plans to ban non-compete clauses for low- and middle-income workers, with a proposed start of 2027. It is not yet law, but employers should audit existing restraint-of-trade clauses now and consider alternative protections such as confidentiality and non-solicitation terms.
This article is general information, not legal advice. Confirm the detail that applies to your business against the official Fair Work and ATO guidance (and Services Australia and WGEA where relevant), and seek professional advice for your specific circumstances.
