Australia employment law: the Closing Loopholes employer guide
The Closing Loopholes reforms are the biggest overhaul of the Fair Work Act in years, rolling out from December 2023 through 2026, alongside Payday Super, which started 1 July 2026. This hub covers the 4 changes that matter most for employers, with a full timeline of what changed and when.
What changed, and what matters most
Each topic explains the change, when it lands, and who handles it if you hire through Teamed.
In forceCasual employees and the employee choice pathwaySince 26 August 2024, whether someone is a casual employee depends on the real substance of the relationship, not just the contract. The employee choice pathway, fully live since August 2025, lets eligible casuals ask to convert to permanent employment, and employers must respond within 21 days.26 August 2024
In forceClosing Loopholes: what changed in Australian employment lawTwo Acts, the Closing Loopholes Act 2023 and Closing Loopholes No. 2 Act 2024, rewrote Australian employment law in stages from December 2023 to August 2025, covering wage theft, labour hire, casual employment, contractor status, the right to disconnect and gig-economy protections. A handful of gig-economy minimum standards orders are still being finalised into 2026.15 December 2023 (rollout began)
In forceEmployee vs independent contractor: the whole of relationship testSince 26 August 2024, whether someone is an employee or a contractor is decided by the real substance, practical reality and true nature of the relationship, not the written contract alone. High income contractors can opt out and be assessed under the old contract-only test instead.26 August 2024
In forceNotice, redundancy and unfair dismissal in 2026From 1 July 2026 the unfair dismissal high income threshold is $190,100 and the compensation cap is $95,050. Statutory notice runs from 1 to 4 weeks by service length, plus an extra week for older, longer-serving employees, and redundancy pay scales from 4 weeks up to a peak of 16 weeks.1 July 2026 (annual indexation)
In forceSuperannuation guarantee and Payday SuperThe super guarantee rate has been 12% since 1 July 2025. Payday Super started on 1 July 2026 as scheduled: employers must now pay super within 7 business days of each payday, not quarterly, on a broader qualifying earnings base up to a $270,830 annual cap.1 July 2026
Australian employment law changed substantially between December 2023 and 2026. Two Acts, the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 and the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, rewrote how employee and contractor status is decided, how casual employment works, how labour hire and gig-economy workers are protected, and made intentional wage underpayment a criminal offence. Separately, Payday Super started on 1 July 2026, requiring employers to pay superannuation within 7 business days of every payday instead of quarterly, and the unfair dismissal high income threshold and notice and redundancy entitlements reset every 1 July. This hub explains the reforms that matter most to employers hiring in Australia, with a full chronological timeline and a note on who handles each change if you hire through Teamed.
The big picture
The Closing Loopholes reforms rolled out in stages from 15 December 2023 through 26 August 2025, and Payday Super started on schedule on 1 July 2026, two weeks before this page was last reviewed. Together they represent the most significant change to Australian employment and superannuation law in years.
Why did Australian employment law change so much?
The Closing Loopholes Acts targeted specific gaps the government identified in worker protections: labour hire pay inequality, contractor misclassification, casual employment uncertainty, wage theft, and gig-economy workers with no minimum standards. Rather than one big-bang date, each measure commenced separately as it was ready.
What should employers focus on first?
The employee vs contractor test and the casual employee changes affect how you classify and engage people day to day, and have been in force since August 2024. Payday Super changes how and when you pay superannuation, and started 1 July 2026, so it is the newest operational change to get right.
How does this work if you hire through an EOR?
An Employer of Record is the legal employer of your Australian team, so contractor misclassification risk, casual conversion obligations, correct notice and redundancy calculations, and on-time superannuation under Payday Super are all Teamed's responsibility, not yours. You stay the day-to-day manager while we hold the compliance.
Frequently asked questions
Is the Closing Loopholes reform program finished?
Mostly. The core measures, contractor classification, casual employment, wage theft, labour hire and the right to disconnect, are all in force. A small number of sector-specific minimum standards orders for gig-economy workers are still being finalised by the Fair Work Commission.
Where can I see exactly what changed and when?
The timeline page on this hub lists every confirmed milestone in date order, with a primary source for each and a note on who handles it if you hire through Teamed.
Do these pages give legal advice?
No. They summarise the current position with primary sources, reviewed as the law changes. For a specific situation, Teamed's HR and legal experts can advise, or speak to the Fair Work Ombudsman or a qualified professional.
The Closing Loopholes reforms are Australia's biggest overhaul of the Fair Work Act in years. When Teamed is your legal employer, we hold that complexity: compliant contracts, policies and payroll in Australia, updated as each measure actually commences.
