Australia
Pay Day Super
Impact date: 1 July 2026
On 1 July 2026, the Treasury Laws Amendment (Payday Superannuation) Act 2025, introduced the 'Pay Day Super' reforms. The reforms amend the Superannuation Guarantee (Administration) Act 1992 (Cth) and associated superannuation and taxation legislation and will be administrated by the Australian Taxation Office.
Prior to 1 July 2026:
- employers were required to make superannuation guarantee (SG) contributions quarterly and
- the SG was calculated as 12% of an employee's ordinary time earnings only
Since 1 July 2026:
- employers must pay SG contributions at the same time as they pay their employees' wages and
- the SG payable is calculated as 12% of an employee’s 'qualifying earnings' (which includes ordinary time earnings, all commissions paid to an employee, salary sacrifice amounts that would qualify as qualifying earnings had they not been sacrificed to superannuation and other amounts that are currently included in an employee's salary or wages for SG)
These reforms are intended to address the issue of unpaid superannuation and to help secure dignified retirement outcomes for working Australians. Additionally, employees will benefit from higher retirement savings from more frequent and earlier superannuation contributions throughout their working life.
Employer implications/action needed Employers should review their payroll systems and processes to ensure compliance. This may include conferring with their payroll software provider, accountant, or registered tax professional.
Employer risk Employers may face financial penalties (including the super guarantee charge) for failure to comply with the new reforms. Late payment of super contributions may also breach the Fair Work Act or an applicable award or enterprise agreement.
Changes to intractable bargaining workplace determinations
Impact date: 7 July 2026 An intractable bargaining workplace determination is a legally binding order made by the Fair Work Commission (FWC) to resolve the terms of an enterprise agreement when negotiations between the employer and employees and/or unions are deadlocked. This concept was introduced on 6 June 2023 as part of the 'Closing Loopholes' amendments to the Fair Work Act 2009 (Cth). From 7 July 2026, the Building Cooperative Workplaces reforms amended the framework for intractable bargaining workplace determinations, by providing that certain mandatory terms in a determination cannot be less favorable to employees than the equivalent terms in the enterprise agreement that previously covered them. Workplace delegates’ rights and dispute resolution terms are examples of protected mandatory terms.
Employer implications/action needed Employers engaged in enterprise bargaining should reassess their bargaining strategy and assumptions about the possible content of any intractable bargaining workplace determination. In particular, employers should identify the mandatory terms in the existing enterprise agreement that may now set a floor for any future determination and factor that into bargaining decisions. These changes may also streamline the negotiation and intractable bargaining process.
Employer risk Employers may have reduced leverage in intractable bargaining processes because the FWC is now constrained from setting certain mandatory terms below the standard in the predecessor agreement, which may increase the cost or complexity of resolving bargaining disputes.
Fair Work Commission introduces procedural changes
Impact date: 7 July 2026
On 7 July 2026, the Building Cooperative Workplaces Reforms introduced various procedural changes intended to make FWC processes more efficient. Relevantly, the FWC can now deal with general protections dismissal and unlawful termination disputes without first determining whether the applicant was dismissed, determine certain matters on the papers without a formal conference or hearing, and delegate the issuing of certificates in general protections dismissal and unlawful termination disputes to certain FWC staff. In practice, these changes are contributing to shorter conferences and fewer grants of legal representation, with matters moving more quickly to certificate issue or substantive determination.
Employer implications/action needed Employers should prepare for a more streamlined FWC process, including a greater likelihood that procedural objections will not delay the progression of a matter. Employers should also consider establishing processes to train and otherwise prepare HR Business Partners to appear in conferences.
Employer risk These changes may increase the risk of claims by employees alleging constructive dismissal, as employees will no longer need to argue whether they were actually dismissed or not, along with other alleged contraventions of general protections provisions. However, employers will face less risk of incurring significant legal costs in responding to claims within the FWC.
Food delivery workers to receive better pay under new minimum standards
Impact date: 17 August 2026
On 17 August 2026, new interim minimum standards for Uber drivers and similar workers were introduced, creating Australia’s first legally enforceable minimum pay framework, which has been described as a world-first model for gig workers. The standards provide a minimum hourly rate of at least $31.30 per hour for e-bike riders, $31.50 for motorcycle riders and $32.00 for car drivers, together with minimum personal accident insurance, consultation obligations, a dispute resolution process and unpaid time away rights. The reforms are significant because they preserve contractor-style flexibility while extending a statutory safety net to employee-like workers in the gig economy.
Employer implications/action needed Businesses engaging these workers should review their payroll practices, engaged-time calculations, insurance arrangements and worker communications to ensure compliance with the interim standards. Businesses should also prepare for consultation obligations and dispute resolution processes, and monitor whether the interim order is later varied.
Employer risk Non-compliance with a minimum standards order may expose platforms and other regulated businesses to enforcement action, penalties and reputational damage.
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