Changes in Australia’s Employment Laws: What Employers Need to Know

On July 1, 2026, several legislative changes went into effect in Australia, impacting parental leave, superannuation, employee remuneration, and labor hires. In the state of Victoria, non-disclosure agreement obligations kicked in, and a new work-from-home benefit has been proposed.

How has parental leave changed in Australia?

For parents of children born or adopted on or after July 1, 2026, the number of Parental Leave Pay weeks increased to 26 weeks, up from 24 weeks. Four weeks are now reserved for the non-primary parent — an increase from the three weeks previously reserved.

For parents of children born or adopted on or after July 1, 2025, Federal Government superannuation contributions for eligible recipients started on July 1, 2026.

Baby Priya’s Bill, which went into effect on November 7, 2025, prohibits employers from cancelling or refusing employer-funded parental leave if an employee’s infant dies or is stillborn.

How has superannuation changed in Australia?

On July 1, 2026, an annual maximum super contribution base of $270,830 AUD took effect, replacing the quarterly cap model. Until the annual maximum is reached, the super guarantee of 12% must be applied to each pay cycle’s qualifying earnings.

These changes require employers to:

• Cumulatively track qualifying earnings for the full financial year.
• Make super contributions up to the annual maximum (or beyond if they’ve decided to exceed the annual threshold).

Employers should note:

• They are now required to make superannuation contributions within seven business days of each pay date.
• They must make contributions on all payments that were included as part of the super calculations in the past.
• Commission for work outside of regular work hours is “superable.”
• Failure to comply with the new rules can result in the Superannuation Guarantee Charge (SGC) — a penalty enforced by the Australian Taxation Office — and related penalties. The SGC amounts to more than the super owed to the employee, and it is not tax-deductible.

How have minimum wages and modern award minimum wages changed in Australia?

Modern award minimum wages — pay rates set by the Fair Work Commission that are specific to particular industries or occupations — increased by 4.75% on July 1, 2026. At the same time, the national minimum wage increased by 6% to $24.95 AUD per hour, which amounts to $1,004.90 AUD per week.

How have labor licensing schemes changed in Australia?

In Victoria, stricter labor licensing standards went into effect on June 1, 2026. They include broader compliance obligations, an “enhanced fit and proper person” requirement, and an express financial viability requirement.

In South Australia, the labor hire licensing regime expanded to cover all industries as of July 29, 2026, with some exclusions and exemptions. Revised definitions of “labor hire services” and “labor hire worker” have also been implemented through legislation.

How have employment laws changed in Victoria?

Additional changes in Victoria include restrictions on the use of non-disclosure agreements (NDAs) in workplace sexual harassment matters. From July 1, 2026, onward, NDAs will only be allowed — without influence or undue pressure — when requested by the complainant, written in plain language, and preceded by an information statement and review period.

Also in Victoria, the Equal Opportunity Amendment (Work from Home) Bill 2026 proposes a statutory work-from-home entitlement. It would allow eligible employees in the state to work from home two days per week, where reasonable. If passed, the bill will go into effect on July 1, 2027.

Sources: Baker McKenzie, Human Resources Director