EOFY Compliance Reminders for Australian Employers in 2026

EOFY is an important time for employers to review payroll systems, employment documentation and workplace compliance obligations to ensure employees are being paid correctly and legal requirements are being met.

Several workplace law and payroll changes commencing from 1 July 2026, including Payday Super reforms, may impact payroll administration, cashflow management, onboarding procedures and broader compliance processes.

Minimum Wage and Award Changes Effective 1 July 2026

Under the Fair Work Act 2009, the Fair Work Commission (FWC) conducts an Annual Wage Review each year to determine whether increases should apply to the National Minimum Wage and modern award minimum wages.

Employers should monitor the 2025–2026 Annual Wage Review outcome closely and ensure payroll systems are updated accordingly. Updated award pay guides are typically released by the Fair Work Ombudsman following the decision.

Join our newsletter to be notified as soon as the new pay guides are released, and to access a copy of the following new pay guides:

• Aboriginal and Torres Strait Islander Health Award [MA000115]

• Aged Care Award [MA000018]

• Clerks Award [MA000002]

• Health Professionals and Support Services Award [MA000027]

• Nurses Award [MA000034]

• Professional Employees Award 2020 [MA000065]

• SCHADS Award [MA000100]

Preparing for Payday Super

Effective 1 July 2026, under the Treasury Laws Amendment (Payday Superannuation) Act 2025, employers will be required to pay superannuation guarantee contributions at the same time employees are paid their wages, replacing the current quarterly payment model. Super contributions will need to reach employees’ super funds within seven calendar days of payday.

For businesses that currently process super quarterly, Payday Super may result in:

• substantially more frequent payment processing

• increased payroll administration

• cashflow impacts

• tighter payroll reconciliation requirements

• greater scrutiny of payroll accuracy and timing

Importantly, unpaid or late superannuation may expose employers to:

• Australian Taxation Office (ATO) enforcement action

• super guarantee charge liabilities

• interest and penalties

• potential Fair Work Act claims for unpaid entitlements

From 1 July 2026, Australian employers can no longer treat superannuation as a quarterly payroll task. Under the new Payday Super reforms, compulsory super contributions must generally be paid at the same time as wages and received by the employee’s super fund within seven days of payday.

Employers should begin preparing well before 1 July 2026 by reviewing their payroll, superannuation and onboarding processes to ensure systems, cashflow management and payroll practices are equipped to manage more frequent super payments and ongoing compliance obligations.

Businesses using manual or partially manual payroll systems may require significant operational changes before the reforms commence.

For more information about the practical implications of Payday Super, read What Does Payday Super Mean for Employees in Australia? >

Paid Parental Leave Changes Continue

Further changes to Paid Parental Leave (PPL) arrangements will also apply from 1 July 2026 under the More Support for Working Families Act 2024.

From 1 July 2026, the total Government-funded Paid Parental Leave entitlement will increase to 26 weeks.

The 2026 increase represents the final stage of the Government’s Paid Parental Leave expansion.

Although Paid Parental Leave is funded by the Australian Government, employers should review:

• internal parental leave policies remain current

• employee handbooks and HR documentation are updated

• managers understand leave entitlements and flexibility provisions

• payroll systems correctly manage employer-funded and government-funded leave arrangements

The expansion of Paid Parental Leave to 26 weeks from 1 July 2026 reflects a continuing shift toward more family-friendly workplace standards in Australia, with employers expected to maintain compliant and contemporary leave practices.

Be Proactive with EOFY HR & Payroll Compliance Reviews

Payroll errors can quickly accumulate into underpayment risk, particularly for employers managing:

• modern award classifications

• penalty rates and allowances

• annualised salary arrangements

• casual loading calculations

• overtime and time-in-lieu arrangements

Conduct a payroll compliance review to ensure your rates, classifications and systems remain accurate.

EOFY is also an appropriate time to review broader HR and compliance processes, including:

• employment contracts

• independent contractor arrangements

• workplace policies

• record-keeping practices

• timesheet and rostering systems

• onboarding documentation

• payroll audit trails

• Fair Work Information Statement processes

With increasing regulatory scrutiny on wage compliance and underpayments, employers are expected to demonstrate proactive governance and due diligence across both payroll and HR systems.

Need Help Preparing for EOFY Compliance?

WorkPlacePLUS supports employers across Australia with payroll compliance reviews, HR audits, award interpretation, payroll compliance training and practical employee and industrial relations advice.

Preparing early can help reduce compliance risk, improve payroll accuracy and avoid costly underpayment issues.

For more information and tailored support, please contact us today.

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