Key Workplace Law Changes Across Australia: What Employers Need to Know as we move into the EOFY 2026.

 

Key Workplace Law Changes Across Australia: What Employers Need to Know in 2025–2026

Australian employers have faced a significant wave of workplace law reforms throughout 2025 and into 2026. From new gender equality obligations and parental leave protections to labour hire licensing changes, anti-vilification reforms, and superannuation payment requirements, organisations must remain proactive in understanding and adapting to evolving compliance obligations.

This article highlights the most significant developments at both the Commonwealth and state levels and outlines what employers should be preparing for in the coming months.

 

What are the most important workplace law changes employers need to know in 2025/2026

Australian employers need to prepare for major workplace law reforms, including more frequent superannuation payments, expanded parental leave entitlements, stronger wage theft penalties, new gender equality reporting requirements and enhanced protections against workplace harassment and bullying. Staying compliant will require businesses to review policies, payroll systems and employment practices.

 

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New Gender Equality Targets for Large Employers

One of the most significant Commonwealth reforms commenced on 4 April 2025, introducing new gender equality target requirements for employers with 500 or more employees.

Under the changes, affected employers must select three gender equality targets from a prescribed list of six and report on these targets through their annual submissions to the Workplace Gender Equality Agency (WGEA). The targets focus on critical workplace issues including gender pay equity, parental leave support, workforce participation, leadership representation, and measures addressing sexual harassment.

Employers are expected to either achieve their selected targets or demonstrate measurable improvement over a three-year period. Failure to do so may require employers to provide a reasonable explanation.

The framework was further amended on 26 May 2026 to provide organisations with additional flexibility. Employers will now have a 12-month transition period at the conclusion of each three-year cycle before they are required to set new targets for the next reporting period. However, annual WGEA reporting obligations remain unchanged.

These reforms reflect the Federal Government’s continued focus on workplace gender equality and accountability among large employers.

 

Fair Work Act Changes Protect Penalty and Overtime Rates

From 30 August 2025, amendments to the Fair Work Act 2009 (Cth) strengthened protections relating to employee penalty rates and overtime entitlements.

The reforms require the Fair Work Commission, when making, varying, or revoking modern awards, to ensure that employee penalty and overtime rates are not reduced. The Commission is also prohibited from including award provisions that substitute existing penalty or overtime entitlements where the result would be a reduction in an employee’s overall additional remuneration.

The changes provide greater certainty for employees while reinforcing the importance of maintaining fair compensation arrangements across award-covered industries.

 

Expanded Paid Parental Leave Protections

Further amendments to the Fair Work Act commenced on 7 November 2025, strengthening protections for employees accessing employer-funded paid parental leave.

Under the new provisions, employees will not lose access to employer-funded paid parental leave if their child is stillborn or dies shortly after birth. Employers are prohibited from refusing, cancelling, or withdrawing parental leave entitlements in these circumstances unless the employee specifically requests cancellation or an alternative arrangement is already provided under the employment contract (Baby Priyas’s Bill).

The reform recognises the devastating impact of pregnancy loss and infant death and seeks to ensure affected employees receive continued support during an exceptionally difficult period.

Government funded parental leave expanded to 26 weeks from 1 July 2026. Shared time off increased from 2 weeks to 4 weeks.

GOVT PAID PARENTAL LEAVE (SOCIAL SERVICES PAYMENT)		FAIR WORK ACT ENTITLEMENT (TO UNPAID TIME OFF)
ENTITLEMENT	Expanded to 24 weeks (26 weeks from 1 July 2026)	Up to 24 months (12 additional months on request) unpaid leave
ELIGIBILITY	Both employees eligible. Can be shared/divided between both parents, so long as they both meet the eligibility test. However, only 20 days may be taken at the same time. Dad and partner pay has been abolished.	Both parents entitled. Can be taken at the same time.
COMMENCEMENT	From the day of birth up to 24 months	Up to 6 weeks before the expected birth and up to 24 months after the birth.
FLEXIBLE PARENTAL LEAVE	Paid leave can be taken in as small a block as one day and do not need to be taken continuously	After a continuous period (minimum 10 days) can take up to 24 weeks (26 weeks from 1 July 2026)
SUPERANNUATION	Paid on total govt paid parental leave (pay by the ATO, not the employer)	N/A

 

Workplace Protection Orders for Commonwealth Workers

On 29 October 2025, new laws commenced allowing Commonwealth entities to seek Workplace Protection Orders through the courts.

The orders are designed to protect Commonwealth workers—including employees, contractors, and volunteers from threats, harassment, intimidation, or actual harm arising from their work.

The introduction of Workplace Protection Orders reflects a growing emphasis on psychosocial safety and the protection of public sector workers from workplace-related risks.

 

Superannuation Payments to Become More Frequent

One of the most significant upcoming compliance changes will take effect on 1 July 2026.

Employers will be required to pay superannuation contributions within seven business days of the amounts becoming payable, replacing the current quarterly payment system.

The reform is intended to improve retirement outcomes for employees by ensuring superannuation is invested sooner and reducing the risk of unpaid or delayed contributions. Employers should review payroll systems and cash flow processes well in advance to ensure they can meet the accelerated payment requirements.

 

Labour Hire Licensing Expands

Several states have strengthened labour hire regulation during the past year.

In South Australia, major reforms commenced on 29 January 2026, expanding the labour hire licensing scheme to cover all labour hire providers and workers rather than limiting coverage to five designated sectors.

The legislation also updated key definitions—including “labour hire services,” “labour hire worker,” and “supplier“—to better align with regulatory frameworks operating in Victoria, Queensland, and the Australian Capital Territory.

Meanwhile, Victoria strengthened its labour hire licensing regime by enhancing the “fit and proper person” test applied to licence applicants. The Labour Hire Authority also received expanded powers to request documents and information during investigations and compliance activities.

These changes demonstrate a continued regulatory focus on labour hire practices and worker protections across Australia.

 

Long Service Leave Portability Reforms

States have also continued to modernise long-service leave arrangements.

In Western Australia, the portable long service leave scheme for the construction industry expanded on 30 June 2025. The reforms broadened eligibility and extended coverage to a wider range of construction workers.

The Australian Capital Territory introduced greater flexibility for workers accessing portable long service leave benefits, with reforms commencing on 19 November 2025. Eligible workers now have more options regarding when and how they receive payment of accrued entitlements.

These developments support workforce mobility while preserving employee access to long service leave benefits.

 

Changes to Wage Theft Framework

Wage theft offence who intentionally fail to pay and/or pay super in full when due can face:-

SIGNIFICANT PENALTIES

• Companies: fines of up to $7.825m (or 3 x the amount of underpayment)
• Individuals: up to 10 years imprisonment and/or a fine of up to $1.56m (or 3 x the amount of underpayment)
• Penalties for “related offences” which may implicate employees, officers and agents.

 

Stronger Protections Against Vilification, Harassment and Bullying

Victoria and New South Wales have both introduced important reforms designed to strengthen workplace protections.

In Victoria, significant anti-vilification reforms commenced on 15 April 2026. The legislation established a new framework of criminal and civil prohibitions targeting unlawful vilification and incitement, including conduct occurring in workplace settings.

The reforms also expanded protected attributes under the Equal Opportunity Act 2010 (Vic) and strengthened employer accountability through broader vicarious liability provisions.

Additional Victorian reforms will commence on 1 July 2026, restricting the circumstances in which workplace non-disclosure agreements (NDAs) can be used. Employees will be able to terminate certain NDAs after 12 months, and agreements may be rendered unenforceable where they prevent disclosure of material information or obstruct workplace investigations.

In New South Wales, reforms that commenced on 3 July 2025 created new anti-bullying and sexual harassment jurisdictions within the NSW Industrial Relations Commission. These protections apply to workers who are excluded from equivalent remedies under the Fair Work Act.

The NSW reforms also expanded victimisation protections and introduced an objective test for the reverse onus of proof, strengthening avenues for affected workers to seek redress.

 

New Rights for Transport Gig Workers

New South Wales also introduced reforms affecting transport sector gig workers on 3 July 2025.

The legislation expanded workplace rights and protections available to gig economy workers operating within the transport sector and enhanced the powers of the NSW Industrial Relations Commission to deal with disputes and employment-related concerns.

The reforms represent part of a broader national trend toward improving protections for workers engaged through digital platforms and non-traditional work arrangements.

 

Minimum Wage and Award Rate Increases

Following the Fair Work Commission’s 2026 Annual Wage Review, the National Minimum Wage and minimum award wages will increase from the first full pay period commencing on or after 1 July 2026. The National Minimum Wage will increase to $1,004.90 per week or $26.44 per hour for full-time employees not covered by an award or enterprise agreement. Most minimum award wages will increase by 4.75%, benefiting approximately 2.8 million Australian workers. Employers should ensure payroll systems, employment contracts, and budgeting forecasts are updated to reflect the new rates.

 

Restrictions on Non-Disclosure Agreements

Victorian employers will face new limitations on the use of workplace non-disclosure agreements (NDAs). The reforms will allow complainants to terminate certain NDAs after 12 months and render some confidentiality provisions unenforceable where they prevent disclosure of material information or obstruct workplace investigations. Employers should review existing complaint-handling procedures and template settlement agreements before the changes commence.

The Federal Government plans to ban non-compete clauses for employees earning below the high-income threshold (currently $183,100) and some contractor agreements by 2027.

 

Working From Home (Fair Work Amendment (Right to Work from Home) Bill 2025

Proposal for employees to have the right to request WFH for up to two days a week.

 

Flexible Work Requests and Agreements

Who can request?

• Anyone can ask for flexibility, but only certain employees have a legal right to request flexible working arrangements (parents (school age or younger), carers, have a disability, pregnant, experiencing DV and 55 + over).
• Includes casuals, but they must also have been employed for 12 months and have a reasonable expectation of continuing to work on a regular and systematic basis.

What is it?

• A flexible work arrangement is a formal agreement to change an employee’s standard working arrangements to accommodate commitments out of work (e.g. child caring obligations).

Link required: There must be a nexus (aka “connection) between the request and the circumstances.

 

Looking Ahead

The breadth of workplace reforms introduced across Australia during 2025 and 2026 highlights the increasingly complex regulatory environment facing employers.

Organisations should review their workplace policies, reporting frameworks, payroll systems, labour hire arrangements, and employee protections to ensure ongoing compliance. Particular attention should be paid to the upcoming superannuation payment changes, evolving anti-harassment obligations, and new gender equality reporting requirements.

As regulators continue to focus on workplace fairness, equality, and employee wellbeing, proactive compliance will remain essential for employers seeking to manage risk and maintain positive workplace cultures.

 

Why Choose Coutts

Karena Nicholls is the Head of the Employment Law Team and practises across Australia. What that means is she can help you manage your Employer obligations and ensure you are compliant, minimise risk and keep up to date with the changing landscape. Contact Karena and her team at Coutts.

 

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