Changes Australian Employers Need to Know Before 1 July 2026

The second half of 2026 is shaping up to be a big one for workplace compliance. From superannuation overhauls to new parental leave entitlements and proposed work-from-home rights, there is a lot to stay on top of. Here is what is changing and what you should be doing.

Award Rate Increases — Effective 1 July 2026

Each year, the Fair Work Commission reviews and updates pay rates under all Modern Awards. The 2026 increase will be announced in late June, with employers required to apply the new rates from the first pay cycle after 1 July.

What you need to do:

• Watch for the Fair Work Commission announcement in late June

• Audit the pay rates of anyone employed at or near the award minimum

• Check that employee classifications are up to date, particularly where years of service trigger a reclassification

• Remember allowances, these get updated as well as base rates

Getting your payroll and classifications reviewed now means less stress when the new rates are announced.

Superannuation Changes Effective 1 July 2026

Under the current rules, employers have the flexibility to remit superannuation contributions once per quarter. That obligation is about to become significantly more frequent.

Effective 1 July 2026 superannuation must be paid at the same time as wages, with contributions reaching the employee's nominated fund within seven business days of each pay run.

Key details:

• The quarterly model is being scrapped for most employees.

• New starters get a slight grace period their first super contribution can be made within 20 business days of their first pay.

• The final quarterly payment for April–June 2026 is still due by 28 July 2026 under the old rules.

What you need to do:

• Review your current payroll system

• Talk to your payroll software provider, accountant or tax professional about how to manage the new changes

• The ATO is will enforce penalties including an enhanced Superannuation Guarantee Charge to non-compliant businesses.

Paid Parental Leave Increases to 26 Weeks

Effective 1 July 2026, the Paid Parental Leave scheme will extend the total entitlement to 26 weeks (130 days) for eligible parents of children born or adopted on or after that date.

The New Changes:

• The total entitlement increases by two weeks to reach the 26-week cap.

• For couples, four weeks are now reserved for each parent, meaning the secondary carer has their own dedicated entitlement.

• Employees are more likely to take longer or split periods of parental leave as a result

What you need to do:

• Update your Parental Leave policy to reflect the new entitlements

• Consider how the four-weeks-per-parent design might affect workforce planning, particularly for teams where multiple employees are around parenting age

Flexible Work and Work-From-Home Rights

The right to request flexible working arrangements including remote work has been steadily strengthening. Recent changes to the Fair Work Act 2009 have expanded eligibility and given the Fair Work Commission greater power to step in when disputes arise.

Who can currently request flexible arrangements?

Employees who have completed 12 months of continuous service (or casual employees with 12 months of regular work) can make a request if they:

• Are pregnant

• Are a parent or carer of a school-aged child or younger

• Are a carer under the Carer Recognition Act 2010

• Have a disability

• Aged 55 or older

• Are experiencing, or supporting someone affected by, family and domestic violence

Types of requests employees can make:

• Changes to start or finish times, or a reduction in hours

• Split shifts or job sharing arrangements

• Working from home or another location

Victorian Employers: Something New Is Coming

From 1 September 2026, the Victorian Government is proposing legislation that would give eligible employees a legal right to work from home at least two days per week if their role can reasonably be performed remotely.

• Businesses with fewer than 15 employees will have until 1 July 2027 to comply

• Roles requiring physical presence (retail, hospitality, construction, healthcare, etc.) will be excluded

• Employers can still refuse on reasonable business grounds

Important: this is not yet law. The Government plans to introduce the legislation to Parliament in July 2026 as part of the Equal Opportunity Act.

With so much changing in a short space of time, staying ahead of your obligations has never been more important. Employers are encouraged to take a proactive approach, reviewing payroll systems, updating workplace policies, and seeking guidance well ahead of the key dates.