From gender equality target-setting requirements to paid parental leave changes, here are the key industrial relations reforms for HR to keep on their radars in 2026. 

Following several years of rapid reform, Australia’s employment law framework will continue to evolve in 2026, with a number of legislative changes already locked in and others under review.

Some of the changes coming into effect will have practical implications for payroll and gender equality reporting, while others will likely influence longer-term workforce planning and compliance strategies.

For HR, the challenge will be ensuring teams, policies and internal processes are ready ahead of key commencement dates.

Below, employment law experts share some of the key legislation changes HR needs to be aware of in 2026, from payday super to gender equality target-setting requirements, and the steps HR should be taking now to prepare.

1. Payday super

Starting from 1 July this year, businesses will be required to pay superannuation at the same time as wages or salaries. This approach replaces the current quarterly model for a pay-cycle-aligned approach, whether that’s weekly, fortnightly or monthly.

Some exceptions will apply, including payments to new employees (with a tenure of less than two weeks) and small and irregular payments that occur outside an employee’s usual pay cycle, such as one-off bonuses or expense reimbursements.

Every ordinary time earnings payment will trigger a seven-day deadline for super contributions to be processed and received by employees’ super funds.

If an employer misses the new seven-day deadline for super payments, the superannuation guarantee charge (the penalty for failing to pay super contributions correctly) will become payable immediately from the next calendar day, with daily compounding interest on the shortfall.

“Payday super is not a small change – it will affect payroll processes and cash flow,” says Tracy Angwin, Director of the Australian Payroll Association.

“Depending on an employee’s salary and how they are paid, it could cost the employer more on an annual basis, so [planning] should be done in plenty of time to ensure superannuation budgets for FY27 are accurate.”

How you can prepare: 

Preparing for payday super requires collaboration between business functions, says Angwin.

“HR can ensure accountability between payroll, finance and people teams by leading change management initiatives, facilitating clear cross-team communication and verifying that payroll has the necessary tools, support and comprehensive training for payday super compliance.”

She suggests a number of additional steps employers can take to prepare for payday super, including: 

• Reviewing superannuation processes, especially any bounce backs due to incorrect fund details
• Ensuring payroll codes for Single Touch Payroll are audited for accuracy
• Confirming software and clearing house readiness
• Planning cash flow with finance teams 
• Ensuring contractor payments align with the payroll process.​

Angwin also notes that the changes could lead to an increase in employee queries about super contributions.

“HR should prepare by communicating changes clearly, updating payslip format as necessary and providing resources like FAQs and super fund verification guidance,” she says.

“Depending on an employee’s salary and how they are paid, it could cost the employer more on an annual basis, so [planning] should be done in plenty of time to ensure superannuation budgets for FY27 are accurate.” – Tracy Angwin, Director of the Australian Payroll Association

2. Gender equality target-setting requirements for large businesses

Starting in April this year, Australian employers with 500 or more employees will be required to select and work towards specific gender equality targets.

Announced by the Workplace Gender Equality Agency (WGEA) last year, the reforms impact close to 2000 employers, who will have to choose three targets from a set list that includes both numerical goals and action-based initiatives.

“The targets relate to matters such as gender composition of the workforce, equal remuneration, flexible working arrangements and eliminating sexual harassment,” says Lauren Brouwer‑French​​​​, Senior Associate and Team Leader at Harmers Workplace Lawyers.

For example, a numerical goal might look like increasing the representation of an under-represented gender by a certain percentage point, while an action-based target might be consulting employees on gender equality issues or conducting a comprehensive pay gap analysis. At least one of the three targets chosen by employers must be numerical.

The change is part of WGEA’s broader strategy to address pay inequity, building on the compulsory publication of gender pay gaps, which commenced in 2023 for most employers.

Private sector employers will choose their targets during the 2025-26 gender equality reporting period, between 1 April and 31 May 2026. Public sector employers will do the same from 1 September to 31 October 2026.

“The data provided to WGEA by an employer in the year before the commencement of a new [three-year] cycle will be used as the ‘baseline’ to measure progress,” says Brouwer‑French.

Employers who fail to select or make progress on their targets within three years risk being publicly named by WGEA. 

“Non-compliant employers will [also] not receive a certificate of compliance,” she says. “Whether an employer has this certificate is considered by the Australian government when assessing an employer’s eligibility to contract with it.”

How you can prepare: 

Before choosing their targets,  gather as much data as possible to determine where their efforts will have the most impact, says Brouwer‑French.

“In preparation for selecting targets in 2026, WGEA is encouraging employers to undertake a comprehensive gender pay gap analysis to identify the unique drivers of specific gender imbalance in their workplace, and therefore which targets are best suited for the specific employer,” she says.

Download this dashboard designed by Champions of Change to learn more about how to uncover systemic issues of gender inequality. 

The targets vary in complexity, and it’s crucial to ensure your chosen goals are realistic and achievable within the given timeframe, she adds.

“Employers will not be allowed to change or abandon targets once they have been set.”

HR can also make use of WGEA’s public resources to assist in this process, including action planning tools and regular learning events.

Check out HRM’s infographic on how to set gender equality targets in line with new WGEA requirements.

3. Changes to paid parental leave

Editor’s note: This section has been updated to clarify that superannuation on paid parental leave is paid by the Australian Taxation Office (ATO) rather than by employers.

Paid parental leave (PPL) has been subject to significant reforms over the past two years, and its evolution will continue in 2026.

Starting from 1 July this year, eligible parents will be able to access up to 26 weeks of government-funded PPL (six months based on a standard five-day week) – an increase from 24 weeks in 2025 and 22 weeks in 2024. 

The amount of leave reserved for each parent in a couple will also increase from three weeks to four weeks on a use-it-or-lose-it basis from July this year. Single parents will receive the full 26 weeks.

“The old PPL scheme offered minimal leave for fathers and partners,” says Fay Calderone, Partner at Hall and Wilcox. “The assumption that mothers were ‘primary carers’ limited shared caregiving and kept women outside of the workforce for longer, contributing towards a gender pay gap.

“The reforms have expanded flexibility to support new parents’ transition back to the workforce and improve participation. This includes increasing the maximum period of PPL… which can be used flexibility and can be shared over two years.”

How you can prepare: 

Calderone recommends a number of steps employers can take now to prepare for the changes, including:

• Reviewing and updating parental leave policies to reflect the legislative changes 
• Ensuring payroll systems are updated to process 26 weeks of paid parental leave, including superannuation contributions
• Planning for longer periods of absence, which may involve employing temporary hires.

Following reforms introduced last year, employees also receive superannuation on paid parental leave (paid directly to their super funds by the ATO), which should also be factored into payroll planning.

4. Outcome of the government’s NES review

In November last year, the House of Representatives Standing Committee on Employment, Workplace Relations, Skills and Training announced a new enquiry into Australia’s National Employment Standards (NES) – the first review of the NES in its entirety since the Fair Work Act 2009 was introduced. 

“Since the Fair Work Act was enacted, we’ve seen the rise of the gig economy, widespread remote work, skills shortages, an ageing workforce and shifting expectations around flexibility and work-life balance,” says Calderone.

“These changes have prompted the need to review whether the NES remains fit for purpose and continues to provide a fair and relevant safety net for all Australian workers.”

In its statement announcing the enquiry, the committee specified that it would not focus on flexible working arrangements, casual employment, parental leave or family and domestic violence leave, as these standards have either been reviewed recently or are scheduled for separate reviews. 

However, the review could result in significant changes to standards such as annual leave entitlements and maximum weekly hours. 

The committee is currently inviting submissions to inform its recommendations to the government. Potential changes already under consideration include:

• An increase in minimum annual leave from 20 to 25 days.
• Stronger redundancy entitlements, including higher payouts, removal of small business exemptions, and changes reflecting technology-driven job losses (such as AI).

How you can prepare: 

To stay ahead of reforms coming from the NES review, Calderone suggests keeping a close eye on the inquiry and pre-emptively reviewing current leave accruals, employment contracts and policies to assess your organisation’s exposure.

For example, employers might face coverage challenges if the push to increase annual leave to 25 days is successful.

“Employers may be required to re-evaluate rostering and overall resource allocation,” she says. “To ensure leave is spread evenly and to reduce ‘leave liability’, employers may need to implement effective scheduling systems.”

Lastly, leaders should ensure that managers have a concrete understanding of the organisation’s policies on casual conversion, flexible work requests, redundancy processes and compliance obligations.

“Proactive preparation will assist employers in adapting quickly and minimising risk when reforms take effect,” says Calderone.

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