The start of a new year always brings with it a host of changes for small and medium businesses, and 2026 will be no different.
From a national cash mandate and merger reforms to new state-based laws, it’s essential that all businesses know how the legal and regulatory landscape is changing next year.
Here are eight January 1 changes that Australian businesses need to know about.
National: Cash mandate
Related Article Block Placeholder
Article ID: 329243
From January 1, 2026, Australian fuel and grocery retailers will be required to accept a maximum of $500 cash for essential items like groceries and fuel.
The change will “ensure Australians who depend on cash for fuel and groceries aren’t left behind”, says Treasurer Jim Chalmers.
Smarter business news. Straight to your inbox.
For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free.
By continuing, you agree to our Terms & Conditions and Privacy Policy.
An exemption will apply to small businesses that have an aggregate annual turnover of less than $10 million; however, the mandate will apply to small businesses that share a trademark with a larger retailer.
The Australian Competition and Consumer Commission (ACCC) is expected to publish guidance about the new rules soon, with penalties to apply to businesses that break the rules from July 1, 1016.
National: Merger reforms
The country’s new merger regime will also commence on January 1, 2026.
Currently, the ACCC oversees a voluntary notice scheme, which captures around 330 of the 1,000-1,500 company mergers that take place in Australia every year.
Under the new rules, companies that want to acquire or merge with another company will need to notify the ACCC of their plans if the value of the merger hits certain thresholds, unless an exemption or waiver applies.
The ACCC will then need to approve the transaction before it can proceed.
The ACCC will consider any merger where the combined Australian annual turnover of the businesses exceeds $200 million, and either the target business or its assets have an Australian turnover above $50 million, or global transaction values over $250 million.
The ACCC will also consider transactions that would involve a major business with annual Australian revenue above $500 million acquiring a smaller business with Australian turnover or assets above $10 million.
The watchdog’s new powers will also allow it to stop ‘creeping acquisitions’, where a larger company buys up a number of smaller businesses.
In the case of medium and large merged firms with combined Australian revenue above $200 million, the ACCC will need to be notified if the cumulative Australian revenue of relevant acquisitions, in similar fields and over a three-year period, is greater than $50 million.
Major businesses that have Australian revenue of more than $500 million will need to notify the ACCC if the cumulative Australian revenue of relevant acquisitions, in similar fields and over a three-year period, is greater than $10 million.
There are a number of additional requirements for major supermarkets and a series of exemptions that will apply to some transactions.
Under the new alert system, businesses will need to pay an initial fee of $56,800 when notifying the ACCC of a proposed acquisition. Higher fees of between around $500,000 and $1.5 million will apply to some transactions that require more in-depth assessments.
Small businesses may be exempt from these fees if their aggregated turnover is less than $10 million.
More information about the new merger rules is available from the ACCC website.
National: Apprenticeship payments
Related Article Block Placeholder
Article ID: 328869
Support payments for new apprenticeships in many industries will be reduced significantly from January 1, 2026.
As previously reported by SmartCompany, major changes are being made to the Australian Apprentice Training Support Payment (AATSP), which applies to apprentices in occupations outside of the housing construction and green energy fields.
At the moment, the AATSP offers apprentices up to $5,000 to help cover their costs of living during their training. A separate payment, the Priority Hiring Inventive, gives employers up to $5,000 to help them support these apprentices.
However, the government is halving both of these payments to $2,500 each, from January 1, 2026.
The change won’t affect apprenticeships that commenced before January 1, 2026.
Apprentices who use the government’s Key Apprenticeship Program in the housing and green energy sectors will continue to receive up to $10,000 in financial support, and their employees will continue to be eligible for $5,000, until December 2026.
National: Privacy compliance crackdown
Australia’s privacy regulator, the Office of the Australian Information Commissioner (OAIC), is set to commence its first-ever privacy compliance sweep in the first week of January, with a particular focus on businesses in industries including retail, real estate, car rentals and more.
The checks are to ensure the privacy policies of these businesses meet legal requirements, particularly in relation to situations where personal information is collected in person at events like open houses, and follow changes to the Privacy Act in 2024.
If businesses are found not to be following the Australian Privacy Principles (APP), they could be hit with a compliance notice or a fine of up to $66,000, according to Gagan Batra, founder and director of Insighten.
“Not all small businesses are covered by the Privacy Act — most under $3 million turnover aren’t yet unless they’re in specific categories like trading in personal info or health services — but if you are covered, you must follow the APPs and have a compliant privacy policy,” says Batra.
“Even if you’re exempt, having a clear policy and solid practices helps build trust and avoids risk.”
Batra recommends businesses review the OAIC’s small business checklist to find out if the Privacy Act applies to them.
Queensland: Procurement system
In the Sunshine State, businesses will have access to an updated procurement system from the start of the new year.
Related Article Block Placeholder
Article ID: 327060
The shake-up of Queensland’s $35 billion-a-year procurement system seeks to give small, family, and regional businesses a bigger slice of the government contract pie by slashing red tape and setting new targets for SME participation.
The Crisafulli government is permanently closing the previous government’s Best Practice Industry Conditions (BPIC) program, and promising to:
award 30% of government contracts to SMEs;
increase the government’s spending with businesses that are owned by, or which support, veterans, businesses that are led by women, and businesses that support people with disability;
allocate at least 3% of its annual procurement spend to Indigenous businesses; and
publish government spending data through a new public portal to provide transparency and accountability.
More information about the new procurement policy is available online here.
New South Wales: Information standard for battery-powered e-bikes and e-scooters
The New South Wales government is introducing a new safety information standard for the sale and supply of e-bikes and e-scooters that are powered by lithium-ion batteries.
From February 1, 2026, NSW Fair Trading will begin enforcing the full safety framework for these products, which includes retailers and suppliers providing clear safety guidance to consumers about the safe use, charging, storage and disposal of the products.
Retailers will also need to prominently display the statement: “Before using this vehicle, check the applicable local laws”.
The change is part of a broader set of guidelines for declared devices, batteries and chargers, and the NSW Small Business Commissioner is advising all retailers, hire businesses and traders to make sure they update all product labels, point-of-sale materials and websites.
More information is available from the NSW government here.
New South Wales: SafeWork hearing test requirements
Also in NSW, businesses will face new hearing test requirements for workers who regularly use hearing protection because of hazardous noise exposure.
These employers will need to conduct a baseline audiometry test within three months of a new worker starting employment, and then provide follow-up hearing tests at least every two years.
The requirements will be enforced by SafeWork NSW and are aimed at reducing the risk of workplace-related hearing loss.
Further details are available in this factsheet from SafeWork NSW.
Australian Capital Territory: Payroll tax surcharge
Employers in the ACT will face higher payroll tax bills from January 1, 2026, after the territory government successfully increased the payroll tax rate to 8.75% for larger employers.
This new rate will be applied to entities with annual Australian wages of more than $150 million.
ACT employers with annual Australian wages of between $2 million and $50 million are subject to a payroll tax rate of 6.85%.
Additionally, surcharges of 0.5% and 1% are applied to ACT employers with annual Australian wages between $50 million and $100 million, and $100 million and $150 million, respectively.
The monthly payroll tax threshold in the ACT sits at $166,666.66, or $2 million per year.
More information is available here.
