July 2026: four changes every Australian employer needs to prepare for now

The new financial year is bringing more than just a date change. From 1 July 2026, four significant employment law reforms will take effect simultaneously, and preparation for each is already overdue.

1. Payday Super: the biggest payroll shift in a generation

If your payroll systems aren’t already being updated, you’re behind.

From 1 July 2026, employers must pay superannuation guarantee contributions at the same time as they pay salary or wages, replacing the current quarterly payment schedule.

Currently, super can be paid up to 28 days after the end of each financial quarter. From July, it moves with every pay run.

Certain exceptions apply, including payments made to newly hired employees with less than two weeks of service, as well as small or infrequent payments that fall outside an employee’s regular pay cycle, such as one‑time bonuses or expense reimbursements.

What the new rules require:

• Super contributions must reach the employee’s fund within seven business days of each payday.
• The legislation was passed by both houses of parliament on 4 November 2025 and takes effect on 1 July 2026.
• The ATO will be the primary enforcement agency, with real-time visibility of super liabilities per pay run.

Why this matters beyond compliance:

More frequent superannuation payments will increase administrative demands and may create cash flow pressure, particularly for small and medium-sized businesses. Delays or system failures are now more likely to result in non-compliance, exposing employers to superannuation guarantee charges, interest, and administrative penalties.

Super can no longer be used as working capital between quarters. Businesses that have relied on that buffer need to act now.

What to do:

• Audit your current payroll process and identify where super sits in the cycle.
• Update your payroll software to automate super payments alongside wages.
• Review cash flow to account for more frequent super disbursements.
• Start the transition early – waiting until July is too late.

foundU’s payroll platform is already built to handle Payday Super, with automated accrual, proactive error alerts, and seamless super payments through its integration with Beam.

2. Paid parental leave expands to 26 weeks

Australia’s government-funded Paid Parental Leave scheme reaches its final expansion on 1 July 2026.

From 1 July, eligible parents can access up to 26 weeks of government-funded paid parental leave, up from 24 weeks. The amount of leave reserved for each parent in a couple also increases from three to four weeks on a use-it-or-lose-it basis.

What’s changing in practice:

• 130 days of Parental Leave Pay, up from 120.
• Payment remains at the national minimum wage rate.
• Four weeks reserved for each parent in a couple, non-transferable.
• The 26 weeks can be shared in any combination between parents.
• Single parents receive the full 26 weeks.

What this means for employers:

The government funds the payments, but employer obligations remain. You still need to:

• Process and respond to parental leave requests under the Fair Work Act.
• Maintain the employee’s position or consult on alternatives.
• Issue payslips for every PPL payment and maintain records.
• Report payments correctly through Single Touch Payroll.

For HR leaders, the implications extend beyond compliance into talent, retention, and employer brand. Businesses that go beyond the minimum – topping up government-funded leave or offering flexibility on return – are increasingly using parental leave policy as a competitive advantage.

Not sure how the parental leave changes affect your business specifically? Citation HR’s Advice Line connects you with Australian HR experts who can walk you through your obligations and help you update your policies before July.

3. Superannuation on parental leave pay: ATO payments begin

This one is already law, but the practical impact takes effect in July 2026.

From July 2025, the government began paying 12% superannuation contributions on Parental Leave Pay, with the ATO handling direct payments to super funds from July 2026.

Employers don’t need to calculate or pay this themselves; the ATO handles it directly. However, if your business offers its own employer-funded parental leave on top of the government scheme, you must continue to pay super on those payments as you would for any other paid leave.

This reform closes a long-standing gap. For years, parental leave created a break in superannuation accumulation that disproportionately affected women. It’s worth proactively communicating the change to your workforce.

4. Gender equality targets for large employers

Following amendments to the Workplace Gender Equality Act 2012, large employers with 500 or more employees will be required to set and work towards specific gender equality targets from 2026. These reforms will affect close to 2,000 employers, each required to choose three targets from a set list.

This is a reporting and accountability reform, not a policy exercise. Employers in scope need to:

• Register which three targets they are committing to.
• Build internal processes to track and report progress.
• Embed targets into workforce planning and leadership decisions.

If your business has 500 or more employees and hasn’t yet engaged with the Workplace Gender Equality Agency, that conversation is overdue.

What to do now

Four reforms are landing at once. The system updates, policy reviews, payroll configuration, and workforce planning required for each take time, and most businesses have less of it than they think.

Start with payroll. Payday Super is the most operationally complex of the four and the one most likely to expose businesses to penalties if systems aren’t ready. foundU’s workforce management platform can help you get there, with built-in Payday Super functionality, award interpretation, and seamless super payments all in one place.

For expert HR guidance across any of the changes above, Citation HR’s Advice Line is there to make sure you’re covered before July.