In brief
A range of changes affecting employers will commence on and from 1 July 2026, with further reforms anticipated later in the year. These developments will impact employee remuneration, superannuation compliance, parental leave entitlements, and labour hire regulation, as well as introduce new work from home and non-disclosure agreement obligations in Victoria.
Key takeaways
Employers should take steps now to ensure practices, systems, policies and contractual arrangements are compliant with recent legislative changes including:
- Modern award minimum rates and other payment increases
- Superannuation contribution timing and an increase to the maximum contribution base
- Increases to government paid parental leave
- Victorian non-disclosure agreement requirements
- Tougher standards for Victorian labour hire licensing
- Expansion of the South Australian labour hire licensing regime.
Businesses should also start to consider what actions are required to prepare for upcoming proposed changes in relation to:
- Victorian working from home rights
- Enterprise Agreement information being considered as part of Commonwealth Government procurement
Key changes
Minimum wages and modern award minimum entitlements increase from 1 July
Following the Fair Work Commission's 2026 Annual Wage Review, from 1 July 2026:
- Modern award minimum wages will increase by 4.75%
- The national minimum wage will increase by 6%, to AUD 24.95 per hour (AUD 1,004.90 per week).
Updated modern award rates and allowances take effect from 1 July 2026.
Employers must ensure that:
- Annualised salaries satisfy award obligations, including any "outer limit" assumptions
- Payroll systems reflect updated rates
- Award coverage and classifications are correct.
Payday super
From 1 July 2026, employers must pay superannuation contributions within seven business days of each pay date, replacing the current quarterly framework.
The super guarantee amount is calculated based on a new concept, "qualifying earnings". This requires employers to make contributions on all payments that were previously included as part of super guarantee calculations. In addition, commission for work entirely outside of ordinary hours is also superable.
Failure to comply may result in liability, including the superannuation guarantee charge and associated penalties.
Maximum super contribution base
From 1 July 2026, there will be an annual maximum super contribution base of AUD 270,830, replacing the quarterly cap model.
The 12% super guarantee must be applied on qualifying earnings each pay cycle until the annual cap is reached.
Employers must:
- Cumulatively track qualifying earnings across the financial year
- Make superannuation contributions up to the annual threshold (unless they decide to provide contributions above this).
Parental leave reforms
Three key changes apply to parental leave:
- Superannuation on Government paid parental leave: Federal Government superannuation contributions will commence being made from 1 July 2026 to eligible recipients for children born or adopted from 1 July 2025.
- Increase to Government Paid Parental Leave Period: For children born or adopted from 1 July 2026, the total number of Parental Leave Pay weeks will increase to 26 weeks from 24 weeks. four weeks will be reserved for the non-primary parent, up from three weeks.
- Baby Priya's Bill: From 7 November 2025, employers have been prohibited from cancelling or refusing employer-funded paid parental leave if an employee's child dies or is stillborn.
Employers should review and update parental leave policies, employee communications and internal guidance materials.
Victorian restriction on non-disclosure agreements
From 1 July 2026, Victoria will restrict the use of Non-Disclosure Agreements (NDAs) in workplace sexual harassment matters. An NDA will generally only be permitted where it is requested by the complainant, written in plain language, preceded by a mandatory information statement and review period, and not affected by undue pressure or influence.
Complainants will also be able to make certain permitted disclosures and terminate an NDA after 12 months.
The reforms reflect a broader national focus on NDAs in workplace sexual harassment and discrimination matters, with the Australian Human Rights Commission recommending federal changes to limit confidentiality and non-disclosure agreements. Employers must follow these NDA requirements where a matter has a Victorian connection.
Victoria and South Australia strengthen labour hire licensing
A tightening of labour hire licensing schemes is occurring in Victoria and South Australia.
Victoria
From 1 June 2026, Victoria will apply tougher licensing standards, including an enhanced fit and proper person requirement, broader compliance requirements (including non-employment matters) and an express financial viability requirement.
South Australia
From 29 July 2026, South Australia's labour hire licensing regime will expand to apply to all industries (subject to some exclusions and exemptions).
The changes to the legislation also revise the definitions of labour hire services and labour hire worker.
Businesses should assess whether they provide or use labour hire services under the expanded definitions.
On the horizon
Commonwealth Government procurement and enterprise agreements
The Workplace Relations Legislation Amendment (Building Cooperative Workplaces No. 1) Bill 2026 proposes to permit Commonwealth Government entities to take into account whether an employer has an enterprise agreement in place when making procurement decisions. This could see preferential treatment by government entities for employers with enterprise agreements.
Right to work from home for Victorian employees
The Equal Opportunity Amendment (Work from Home) Bill 2026 proposes a statutory entitlement for eligible Victorian employees to work from home for two days per week, where reasonable.
The Bill is proposed to commence on 1 September 2026 for larger employers, and on 1 July 2027 for workplaces with fewer than 15 employees.
Key features include:
- Written employee requests
- Employer response within 21 days
- Obligation to cover reasonable expenses to work from home
- A disputes mechanism (the Victorian Equal Opportunity and Human Rights Commission for conciliation and the Victorian Civil and Administrative Tribunal if unresolved).
Employers with employees in Victoria should monitor the progress of the Bill, review internal policies and procedures to ensure they are equipped to respond to work from home notices.
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Milena Mitic, Associate, and Lillian Morgan, Graduate at Law, have contributed to this legal update.