If you’re the owner, manager, or the lucky person handling HR in a smaller business, 2026 is shaping up to be yet another year of changes on the HR front. Here’s a quick rundown of the three major developments you need to be aware of, and why a proactive approach will save you headaches down the track.
1. Payday Super: Superannuation Payments Move to Every Pay Cycle
One of the bigger changes landing in 2026 is the introduction of “Payday Super.” From July 2026, employers will be required to pay superannuation contributions at the same time as wages, rather than quarterly. This change is designed to boost transparency for employees and reduce unpaid super issues.
While there are a few modest exceptions (such as early payments to new staff, and irregular small payments outside of the usual pay cycle), superannuation contributions for standard ordinary time earnings payments will need to be processed and deposited within 7 business days.
Additional charges will apply for employers who do not comply with the new requirements. They may also face penalties for breaches of the Fair Work Act and/or applicable awards or enterprise agreements.
What does this mean for your business?
- You’ll need to update your payroll processes so that super is paid with every pay run.
- For many small businesses, it may also mean reviewing cash flow management, as super payments will be more frequent.
Tips: Now’s the time to check if your payroll software can handle these changes, and to start planning for any impact on your business’s cash flow.
If you need further information relating to these changes, check the ATO website here. Your accountant/bookkeeper should also be able to assist.
2. Changes to Paid Parental Leave: More Flexibility and Access
July 2026 will also bring some changes to Paid Parental Leave (PPL) arrangements, aimed at providing greater flexibility and access for working parents. In a nutshell, the government is increasing the total amount of leave available and making it easier for parents to share entitlements.
What’s changing?
- Eligible parents will from 1 July 2026 have access to up to 26 weeks of government-funded PPL (six months based on a standard five-day week), which is an increase from 24 weeks in 2025 and 22 weeks in 2024.
- The amount of leave reserved for each parent in a couple will also increase from 3 to 4 weeks on a “use-it-or-lose-it” basis. Single parents will receive the full 26 weeks.
What should you do?
- Review your current parental leave policies and processes.
- Ensure you’re ready to support employees who may want to take advantage of the new arrangements.
3. Review of National Employment Standards (NES): Watch This Space
The National Employment Standards (NES) are the foundation of employee rights in Australia, covering things like leave, hours of work, and termination arrangements. In late 2025, the government announced a broad review of the NES, the first full review of the NES since the introduction of the Fair Work Act 2009.
The enquiry will be take place over the course of 2026 and could ultimately result in changes to minimum standards for those Australian workers and their employers who are part of the National Workplace Relations System (which is the vast majority of workers/employers, refer here for more details).
While the committee conducting the review has specified that it does not intend to focus strongly on flexible working arrangements, casual employment, parental leave or family and domestic violence leave, as these standards have either been reviewed recently or are already scheduled for separate reviews, the review could nonetheless result in significant changes to standards such as annual leave entitlements and maximum weekly hours.
While it’s early days in the process, potential changes already slated for consideration include:
- An increase in minimum annual leave from 20 to 25 days.
- An overhaul of redundancy entitlements, including higher payouts and the removal or at least reduction of small business exemptions.
While there’s a fair way to go before any changes to the NES are realised, it’s always good to know what’s potentially coming down the track. Rest assured, we’ve got you covered and we’ll provide further information as and when it comes to light, so that you can prepare for your business for the changes, whatever they might be.
Need Help Navigating HR Compliance and Changes?
Staying on top of your responsibilities as an employer is tough, especially when you’re juggling everything else that comes with running a business. If you’re unsure how these changes might impact your business, or you just want the peace of mind that comes with knowing you’re compliant, we’re here to help.
Reach out to us for further information or assistance.
We’ll help you understand your obligations and put practical solutions in place so you can focus on what you do best.
Contact us at [email protected] or call 1300 783 211 for a friendly chat about your HR needs.
