Four legal changes to watch for in 2026

As we move through 2026, legal changes and obligations for Victorian businesses and individuals have shifted quickly.

Some changes are state‑specific, others are national but have a strong Victorian impact.

Below are four developments clients should understand and act on now.

Wage and payroll obligations are under intense scrutiny

Criminal laws for intentional underpayment and stricter court approach to pay and record‑keeping have raised the stakes. Payday superannuation reforms also start mid‑year, adding new operational duties.

Large employers are already facing high‑profile underpayment actions and Victoria’s litigation environment makes claims more likely to proceed here. Poor record keeping or delayed super payments can attract penalties, back‑payments and reputational harm.

What can employers do?

• Audit payroll processes, award interpretations and timekeeping systems.
• Ensure super payments align with the new payday timing.
• Fix record‑keeping gaps.
• Consider an external payroll compliance review.
• If using contractors, review classification and contract wording to avoid misclassification risk.

Compliance is a major focus

From 1 July 2026, all professional firms, including accountants, lawyers and financial advisers, are required to verify client identities as part of our compliance with new national anti-money-laundering (AML) laws to keep Australians safe.

This change significantly widens compliance obligations for employers, as firms must:

• Update onboarding and client due diligence processes,
• Implement reliable identity‑verification technology,
• Keep detailed records of verification steps and suspicious‑activity assessments, and
• Ensure staff are trained to spot and report red flags.

Employers also need to appoint or designate an AML compliance officer and run regular risk assessments and audits to avoid enforcement action and reputational harm.

Artificial Intelligence, Intellectual Property and technology risks

Australia has not adopted a broad text and data mining copyright exemption, so approaches used overseas may not apply. Trademark and Intellectual Property (IP) disputes are rising, and Artificial Intelligence (AI) raises novel issues around data sourcing, ownership of outputs and liability.

Businesses adopting AI, or buying and selling technology assets, must consider copyright, trade marks, confidentiality and employment ownership questions. IP also interacts with the new merger control rules where IP asset transfers are concerned.

What can you do?

• Treat AI use and IP assets as legal priorities.
• Audit licences, data provenance and contractual ownership of AI outputs.
• Ensure employment and contractor agreements assign IP appropriately.
• For transactions, include bespoke IP warranties and clearances.

Privacy enforcement is now a business‑critical issue

Privacy penalties and enforcement powers have been strengthened at the federal level. New tiered penalties, infringement notice powers and further reforms in the pipeline mean regulators can act faster and impose much larger fines than in the past.

Victorian businesses operating across property, credit reporting, data brokerage, online advertising and tenancy services are specifically on the regulator’s radar.

Class actions and statutory privacy torts emerging in Victoria mean breaches can trigger both regulatory penalties and civil collective claims.

Here’s what you can do:

• Treat privacy as core governance.
• Update privacy policies, tighten data flows and vendor contracts (including ad tech providers), run data mapping and incident response tests, and review whether the small business exemption still protects you.
• If your organisation uses data for AI tools, check lawful sourcing and consent practices now.

Victoria’s legal landscape has shifted in ways that affect nearly every business and professional practice.

From tougher privacy enforcement, stricter wage and super obligations, evolving AI and IP risks, and expanded AML identity checks, the message is clear: compliance can no longer be an afterthought.

If any of these changes impact you, please get in touch with our legal team.

This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your lawyer.