The Compliance Changes Shaping Business in 2026
For Australian businesses, keeping up with regulatory change is an ongoing part of operating. In 2026, a number of significant changes are affecting how businesses manage employees, handle personal information, communicate with customers and manage financial crime risks.
As requirements change, so too can the risks businesses need to consider. Compliance failures can have consequences that extend well beyond penalties or regulatory action. An incorrect payroll process can result in employee disputes, poor handling of personal information can lead to a data breach, or an inappropriate contract term could result in legal action and financial loss.
Here are some of the changes businesses should be aware of in 2026, and the insurance considerations that may sit alongside them.
1. Payday Super
From July 1 2026, employers are required to pay superannuation contributions at the same time as wages, with contributions generally required to reach employees' super funds within seven days of payday.
For businesses, this represents more than a change to the timing of a payment. Payroll systems and processes need to accommodate more frequent superannuation payments, increasing the importance of accurate payroll information and cash-flow management. Errors in payroll or superannuation processing can also lead to disputes with employees, allegations that the business has failed to meet its employment obligations, or claims against the business or its management.
Relevant Insurance: Management Liability may be relevant to certain employment-related claims, depending on the circumstances.
[Read: Why Management Liability Matters: Real Claims]
2. Expanded Privacy Obligations
Privacy remains a significant area of change. From 10 December 2026, organisations covered by the Privacy Act will have additional transparency obligations where they use personal information in certain automated decision-making processes that could significantly affect an individual's rights or interests.
The change is particularly relevant as businesses increasingly use automated systems and artificial intelligence in areas such as customer service, recruitment, marketing and decision-making.
The broader issue is that businesses are collecting and using more personal information across more systems. A failure in how that information is handled can create risks that extend beyond compliance, including privacy complaints, data breaches, business interruption and damage to customer trust.
Relevant Insurance: Cyber Insurance may provide cover for certain costs and liabilities arising from a cyber or privacy incident.
[Read: Top 5 AI Risks for Your Business]
3. The AML/CTF law reforms will apply to more businesses
From 1 July 2026, Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) law reforms expanded to cover additional professional services. This includes certain services provided by lawyers, conveyancers, accountants, trust and company service providers, real estate professionals and dealers in precious stones, metals and products.
For affected businesses, the reforms introduce new obligations around areas such as customer identification, record keeping, reporting and risk management. They also create additional responsibilities for businesses that may not previously have operated within this regulatory framework.
The risks can extend beyond the immediate compliance obligation. Businesses may need to manage sensitive customer information, implement new processes and ensure staff understand their responsibilities.
Relevant Insurance: Management Liability, Cyber Insurance or Professional Indemnity may be relevant to certain claims arising from management decisions, privacy incidents or professional errors, depending on the circumstances and policy wording.
[Read: Professional Indemnity Insurance: Common Myths Explained]
4. Unfair contract terms
The rules around unfair contract terms are not new, but enforcement is becoming a more significant issue for businesses in 2026. The ACCC has identified unfair contract terms in consumer and small-business contracts, particularly harmful cancellation terms, as a 2026-27 compliance and enforcement priority.
For businesses using standard-form contracts, this means terms relating to cancellations, renewals, refunds or changes to services may warrant closer attention. This is not limited to large corporations. In June 2026, the ACCC commenced Federal Court proceedings against a small health and wellbeing business, alleging that its contracts prevented many consumers from cancelling their programs and included misleading representations about cancellation and refund rights.
The example illustrates how a contract term that may once have been treated as a routine business practice can become a source of legal and financial exposure when it does not comply with consumer law.
Relevant Insurance: Management Liability may be relevant to certain legal and management exposures arising from a dispute or regulatory investigation, depending on the circumstances.
[Read: Why Every Business Needs Management Liability Insurance]
5. SMS sender ID registration
From 1 July 2026, businesses using branded SMS sender IDs must register them through their telecommunications or messaging provider. Unregistered branded sender IDs appear as "Unverified" to recipients, as part of measures designed to reduce text-message scams and impersonation.
For businesses that rely on SMS to communicate with customers, this is another example of a relatively small regulatory change requiring an operational response.
However, the purpose of the new registration requirements is to make this type of impersonation more difficult. By requiring businesses to register their branded sender IDs, customers can more easily distinguish legitimate messages from potential scams. For businesses, this is ultimately a positive step towards reducing the opportunity for SMS-based impersonation and protecting customer trust.
Relevant Insurance: Cyber Insurance may be relevant to certain losses arising from cybercrime, social engineering or other cyber incidents, depending on the circumstances and policy wording.
Compliance is only one part of the risk
Regulatory requirements will continue to change, but the risks businesses face are not necessarily limited to the consequences of non-compliance. This is why compliance should be considered alongside broader risk management. Understanding what has changed, where the business may be exposed and whether existing insurance arrangements remain appropriate can help businesses respond to regulatory change without overlooking the wider risks it may create.
How Coverforce can help
Our insurance brokers can help you understand how changes to your business and its operating environment may affect your insurance arrangements and identify where your existing cover may need to be reviewed. If your business has changed, contact us today to arrange an insurance review.
The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.
REFERENCES
- https://www.ato.gov.au/businesses-and-organisations/super-for-employers
- https://www.ato.gov.au/businesses-and-organisations/super-for-employers/about-payday-super
- https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-guidelines
- https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-guidelines/chapter-1-app-1-open-and-transparent-management-of-personal-information
- https://www.accc.gov.au/business/selling-products-and-services/contracts
- https://www.accc.gov.au/media-release/miyagi-and-its-ceo-in-court-over-alleged-unfair-contract-terms-and-misrepresentations-in-health-program-sales
- https://www.acma.gov.au/sms-sender-id-register
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