EOFY Employment Checklist 2026: What Australian businesses need to review now

EOFY is not just a financial reporting deadline. For Australian businesses, it is a practical annual compliance checkpoint for workplace law compliance, policy update and template revision.

On our radar for 1 July 2026, businesses should be prepared for:

• The introduction of Payday Super
• The increase to modern award rates of pay flowing from the national minimum wage decision (usually handed down by the Fair Work Commission in June each year)
• Changes to the Federal Government’s Paid Parental Leave scheme

What is Payday Super and what does it mean for your business?

On 4 November 2025, the Treasury Laws Amendment (Payday Superannuation) Bill 2025 was passed in Parliament.

The resulting Treasury Laws Amendment (Payday Superannuation) Act 2025 (Cth) makes the following significant changes to the superannuation guarantee (SG) contribution rules that will take effect from 1 July 2026:

• SG charge will be imposed on employers if there is a SG contribution shortfall for any day where “qualifying earnings” are due to be paid (QE Day). Currently, SG contributions are required to be made quarterly.
• Qualifying earnings includes ordinary time earnings (refer to SGR 2009/2 for meaning of OTE), salary sacrifice amounts, commissions, director fees, and fees that are paid in respect of a natural person’s labour under a service contract.
• Late SG contributions made generally within 7 business days after a QE Day can reduce the SG charge to nil (previously this grace period was 28 days following the end of each quarter).
• There is an exemption for the first SG contribution for a new employee, which can be made within 20 business days of their salary or wages being paid.
• Employers with an SG shortfall for a QE day may lodge a voluntary disclosure statement before the day an assessment is made by the Commissioner for the QE day. Lodging a voluntary disclosure statement may reduce the administrative uplift amount of the SG shortfall for that QE day. This will replace the existing requirement to lodge a mandatory SG Statement on or before the 28th day of the second month in the following quarter.

It is incumbent on Australian businesses to review and update their single touch payroll systems to comply with the new pay day superannuation laws.

Note that since 1 January 2024, the entitlement to be paid superannuation has formed part of the National Employment Standards (see Division 10A in Part 2-2 of the Fair Work Act 2009 (Cth)).

How will the national minimum wage decision affect your business from 1 July 2026?

Generally, each year in around June, the Fair Work Commission hands down a national minimum wage decision that increases:

• the national minimum wage (affecting award-free employees); and
• modern award base rates of pay and allowances from 1 July for the following financial year.

Increases to modern award base rates of pay will have a ripple effect on other award entitlements, such as penalty and overtime rates, annual leave loading and allowance calculations (e.g. some allowances that are calculated as a percentage of a “standard rate”).

Increases to modern award base rates of pay may also affect employers who are covered by an enterprise agreement because section 206 of the Fair Work Act 2009 (Cth) imposes a legal obligation that base rates in an enterprise agreement must be read as if it is no less than the underpinning modern award base rate.

It is incumbent on Australian businesses to review and update wage rate settings to stay compliant with the safety nets that are set by modern awards.

What changes to Paid Parental Leave take effect from 1 July 2026?

The Federal Government’s paid parental leave scheme has seen a gradual expansion following the passing of the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023 on 18 March 2024.

Under the Paid Parental Leave Amendment (More Support for Working Families) Act 2023 (Cth), the maximum paid parental leave period for eligible claimants is increased by 2 weeks each year from 1 July 2024 (22 weeks), 1 July 2025 (24 weeks) and 1 July 2026 (26 weeks).

The amount of concurrent paid parental leave pay for partners of eligible claimants will also increase to 4 weeks from 1 July 2026 (previously 3 weeks). Importantly, note that concurrent paid parental leave pay may be lost if it is not claimed by a partner unless an exemption applies.

The above mentioned changes may intersect with employment arrangements in relation to:

• Workplace policies that interact with the paid parental leave scheme; and
• Employment contracts that provide for contractual benefits that interact with the paid parental leave scheme.

For example, a workplace policy or employment contract may provide parental leave related benefits that interact with the Government paid parental leave scheme, such as top up payments.

What employment law changes are coming in FY2026/27?

There are a few topical issues to keep an eye out for in FY26/27:

• The Victorian Government’s proposal to legislate a right to working from home two days per week if the role can reasonably be performed remotely, possibly coming in September 2026 for large business and July 2027 for small business.
• Restriction on use of non-disclosure agreement in sexual harassment cases, coming in November 2026.
• New requirements coming in December 2026 around disclosure of automated decision-making systems that could significantly affect individuals’ rights or interests (e.g. the use of AI technology to vet prospective job candidates).
• A proposal to outlaw non-compete restraints for workers earning less than the high-income threshold.
• Anticipated reform to the National Employment Standards in the Fair Work Act 2009 (Cth) following the completion of the Federal Government’s NES review (launched by the House of Representatives Standing Committee on Employment, Workplace Relations, Skills and Training).