As part of our 2026 Employment Law Update Series, we’re highlighting some of the key legal and regulatory changes that will affect employers over the coming year.

 With increased compliance obligations and tighter enforcement on the horizon, now is the time for businesses to review their employment practices and ensure they’re prepared well before the changes take effect.

 This first update focuses on two major developments employers should have firmly on their radar.

1. Supernnuation Must Be Paid With Wages

From 1 July 2026, employers will be required to pay superannuation at the same time as salary and wages are paid.

This represents a significant shift from the current quarterly payment model.

What this mean in practice:

• Weekly payroll → superannuation paid weekly
• Fortnightly payroll → superannuation paid fortnightly
• Monthly or quarterly superannuation payments will no longer be compliant

The change is intended to improve retirement outcomes for employees and reduce the risk of unpaid super accumulating over time.

2. Consequences for Late Superannuation Payments

The consequences for late or unpaid superannuation will also become more severe.

If superannuation is not paid within 7 days of the wage payment, employers may face:

The Superannuation Guarantee Charge (SGC)

• Compounding interest, calculated daily
• Loss of tax deductibility for the unpaid amount
• Personal liability for company directors under the Director Penalty Regime

This means superannuation compliance is no longer just a payroll issue, it’s a governance and risk issue for directors and business owners.

3. Expansion of Paid Parental Leave

From 1 July 2026, eligible parents will be able to access up to 26 weeks of government-funded paid parental leave.

While the payments are government-funded, employers should be prepared to:

• Review parental leave and return-to-work policies
• Understand how government and employer-paid leave interact
• Plan for longer periods of employee absence
• Ensure consistent communication and workforce coverage

This change forms part of broader reforms aimed at increasing workforce participation and supporting families.

What Employers Should Do Now

As part of your 2026 compliance planning, we recommend:

✔ Reviewing payroll systems and cash flow processes

✔ Ensuring superannuation can be paid in line with wages

✔ Updating employment contracts and internal policies

✔ Educating directors on personal liability risks

✔ Reviewing parental leave frameworks and workforce planning

As part of our 2026 Employment Law Update Series, Hillhouse will continue to keep clients and contacts informed of key regulatory changes, helping businesses plan ahead with confidence and address potential issues before they become problems.

Need Support? 

Our Employment & Workplace Relations legal team works closely with businesses across a range of industries to help them navigate employment law changes with confidence.

Get in touch with Hillhouse Legal Partners to discuss how these changes may impact your business and what steps you should be taking now.