Employment Law Update: October 2026

A lot changed for employers on 1 July, and more is due before Christmas. Below is each change with the one thing a business with 5 to 50 staff should do about it.

Minimum and award wages went up 4.75%

The Fair Work Commission's 2026 Annual Wage Review lifted the national minimum wage and all modern award minimum rates by 4.75% from the first pay period starting on or after 1 July 2026. The national minimum wage is now $26.44 an hour, or $1,004.90 a week.

What to do: check that your payroll system applied the new rates from the right pay period, and that over-award rates still sit above the new minimums. If you aren't sure your staff are on the right classification in the first place, read our guide on award classification.

Payday super is now live

Since 1 July 2026, employers must pay super at the same time as wages. The ATO says contributions have to reach the employee's fund within 7 business days of payday. For a new employee, the first contribution has a longer window of 20 business days, according to the Fair Work Ombudsman.

Super guarantee stays at 12%, but it is now calculated on "qualifying earnings", which includes ordinary time earnings plus salary sacrificed amounts. The ATO's Small Business Superannuation Clearing House closed on 30 June 2026. Late payments now attract an ATO-assessed charge with daily compounding interest, and penalties of 25% or 50% of the unpaid amount.

What to do: run a check on your last three pay runs. Did the super land within 7 business days each time? If you were using the clearing house, confirm your replacement is working.

Higher thresholds, and a proposed ban on non-competes

From 1 July 2026, the high income threshold rose to $190,100 and the unfair dismissal compensation cap rose to $95,050. Both apply to dismissals on or after 1 July. The unfair dismissal application fee is now $92.70.

The same $190,100 figure matters for restraints. On 7 September 2026, Treasury released an exposure draft of the Competition and Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026. Consultation closed on 2 October. As drafted, it would ban non-compete clauses for employees earning at or below the high income threshold, and for all casual employees and pieceworkers. It would also ban clauses stopping staff from poaching co-workers, regardless of pay. Client non-solicitation clauses would still be allowed if reasonable. This is a draft only. It is not law yet and has no start date.

What to do: pull out your employment contracts and note which ones contain non-compete or co-worker non-solicitation clauses. You will want that list ready when the Bill passes. When ending employment, our guide on notice of termination sets out the minimum periods.

Allied health and disability support pay changes

Under the Health Professionals and Support Services Award, a new classification structure and new minimum rates for health professional employees started from the first full pay period on or after 1 October 2026. This covers roles such as physiotherapists, speech pathologists and psychologists. Level 1 now depends on qualification level and years of experience in the profession, including time with other employers. Further increases are scheduled each year from 2027 to 2030. Support staff such as receptionists are not affected by the classification changes.

Under the SCHADS Award, home care disability employees covered by Schedule E will get an interim increase of about 15%. The Commission first proposed 1 October 2026, but on 11 September 2026 moved the start to the first full pay period on or after 1 December 2026. The NDIS has confirmed that date.

What to do: allied health employers should have translated every health professional to the new structure by now. Recheck years of experience, and make sure nobody went backwards (if their old rate was higher, it stays). NDIS providers should budget for the December increase now.

The first right to disconnect rulings

The right to disconnect has applied to small businesses (fewer than 15 employees) since 26 August 2025. In 2026, the South Australian Employment Tribunal decided two of the first claims, Kalleske v Mcguire [2026] SAET 106 and Elliot v Mcguire [2026] SAET 107. Two apprentices got after-hours social media messages from their employer. The Tribunal found the contact unreasonable and intrusive but not a breach, because the employer had not stopped them from disconnecting. There was no consequence for not replying.

What to do: don't treat this as permission to message staff at all hours. If an employee suffers for ignoring messages, the result could be different. See our right to disconnect compliance review for a practical checklist.

SA safety: manslaughter charges, heights and exposure limits

On 23 July 2026, South Australia's first industrial manslaughter charges were filed against a manufacturing and fabrication company and its two directors after a worker died operating a milling machine with an allegedly bypassed safety interlock. The maximum penalties are 20 years' jail for individuals and $18 million for companies.

Two other changes affect construction and manufacturing. From 1 July 2026, work above 2 metres (down from 3 metres) counts as high-risk construction work, so it needs a Safe Work Method Statement. And from 1 December 2026, the current exposure standards for airborne contaminants become Workplace Exposure Limits. Many limits change, and diesel particulate matter gets a limit for the first time.

What to do: walk your site and check every guard and interlock is working and can't be bypassed. Update SWMS for any work between 2 and 3 metres. If your workers are around dust, fumes or diesel exhaust, review your air monitoring before December.

Need a hand?

For help checking where your business stands, contact P&P Consulting at contact@ppconsultingservice.com or call (08) 7133 5330. To see our updates in your Google results, add P&P as a preferred source.