What NSW small businesses need to know: new laws, new rules, new opportunities in 2026

Big regulatory changes are coming in 2026, and they will affect almost every small business in NSW, from tradies to cafés, childcare operators, real estate agencies, professional services and everything in between. Some reforms will mean new compliance requirements; others will create fresh opportunities for growth, trust and competitiveness. Here’s what’s coming and why it matters. 

Professional Services (Lawyers, Accountants, Real Estate Agents): Anti-Money Laundering / Counter-Terrorism Financing Laws Are Coming (1 July 2026) 

The federal Anti-Money Laundering (AML) Tranche 2 reforms come into effect on 1 July 2026 with enrolments for effected businesses open on 31 March 2026. 

For the first time, the following must meet AUSTRAC AML/CTF obligations: 

• Accountants and bookkeepers
• Solicitors
• Conveyancers
• Real estate agents
• Trust and company service providers 

What small businesses need to prepare: 

• Customer due diligence processes
• Suspicious-matter reporting
• Staff training
• Documented AML “programs”
• Registration with AUSTRAC 

This is a major compliance uplift, particularly for small practices that have never had exposure to AML laws before. 

But it also presents a competitive opportunity: firms that adapt early can promote higher integrity and use compliance as a service differentiator. 

Further information is available at: 

• AML/CTF program (Reform) | AUSTRAC
• Summary of obligations (Reform) | AUSTRAC 

Portable long service leave scheme 

The NSW Government’s new Community Services Industry portable long service leave scheme (CSI scheme) commenced on 1 July 2025, supporting community services workers who frequently move between employers by allowing long service leave entitlements to accrue across the sector. The Commission has previously outlined what the scheme means for small businesses and service providers. The article is available here: Portable long service leave scheme launches for NSW community services sector | NSW Small Business Commissioner 

Employer service returns (and pay levy) – quarterly reporting  

In 2026, registered employers and self-employed contractors in the NSW Community Services Industry Long Service Leave scheme must lodge quarterly service returns (and levy payments), with the first three quarters (Jul–Sep 2025, Oct–Dec 2025 and Jan–Mar 2026) due together in April 2026, reporting required worker details and gross ordinary wages (excluding work on Commonwealth places).  

After that, returns and levy payments continue quarterly. 

For full requirements, definitions and due dates, see the Long Service Corporation website: Manage employer service returns - Community Services Industry 

New “Payday Super” reform starting 1 July 2026 

The NSW Small Business Commission has previously flagged the coming “payday super” changes, and the key change for employers is that from 1 July 2026, Superannuation Guarantee contributions must reach employees’ funds within 7 business days of each payday, rather than being paid quarterly (with penalties applying via the Superannuation Guarantee Charge where requirements aren’t met). The article is available here: New “Payday Super” reform starting 1 July 2026 | NSW Small Business Commissioner 

The ATO has also confirmed the Small Business Superannuation Clearing House will stop accepting new users from 1 October 2025 and will close on 1 July 2026, and it will take a measured, risk-based compliance approach in the first year for employers making a genuine effort to comply. The article is available here: Closure of the Small Business Superannuation Clearing House Ahead of Payday Super | NSW Small Business Commissioner 

New information standard for lithium-ion battery powered e-micromobility products  

From 1 February 2026, NSW Fair Trading will begin compliance and enforcement of the full safety framework for lithium-ion e-micromobility products (e-bikes, e-scooters, etc.), including the information standard that requires clear safety guidance at the point of sale/supply (safe use, charging, storage, fire prevention and disposal) and prominent display of the statement: “Before using this vehicle, check the applicable local laws…”.  

These 2026 changes sit alongside the broader product safety standards regime for declared devices, batteries and chargers, so retailers, hire businesses and traders should ensure their point-of-sale materials, websites and product labelling/information processes are ready. 

Further information is available on the NSW Government website: New information standard for e-micromobility products | NSW Government 

Food Waste Rules Are Changing — Get Ready for Mandatory FOGO (From July 2026) 

If your business handles food (café, restaurant, supermarket, caterer, school, hospital, aged care, community venue) 2026 brings a major shift. 

From July 2026, NSW will require commercial and institutional food-waste generators to use separate Food Organics and Garden Organics (FOGO) collection services. 

What this means for small business: 

• You’ll need a separate bin and collection contract for food waste.
• Landlords and strata managers will need to plan space for additional bins.
• Costs may rise initially, but businesses that already separate waste say savings come later through reduced general waste volume.
• Expect support programs and grants to help small operators transition. 

This is one of the biggest environmental changes in years with significant impacts for the small business sector. 

More information about the changes is available on the NSW Environment Protection Authority’s website: FOGO mandates and rollout | EPA 

Environmental compliance update for waste, batteries, livestock processing, pollution, tyres and contractors (from 2025–26) 

NSW small businesses that store waste, handle lithium-ion batteries, or rely on contractors should note changes from the Environmental Legislation Amendment Act 2025 (ELA Act) which clarify licensing triggers and tighten accountability: 

• Batteries: Lithium-ion batteries are now included in the definition of hazardous waste. This means that waste storage activities involving lithium-ion batteries will trigger stricter controls and, depending on quantities and activity type, a licence may be required.
• Tyres: Waste tyre storage thresholds are assessed across the whole premises, including tyres kept in buildings, fixtures, or other spaces above/below the land, not “per shed” or “per area.”
• Pollution incident reporting: The trigger for the duty to notify of pollution incidents causing or threatening to cause “material harm” is lifted from $10,000 to $50,000, reducing notifications for minor incidents while keeping reporting focused on more serious events.
• Livestock processing licensing: Licensing requirements are clarified so a licence is required for the manufacturing or processing of products derived from the processing of animals (not only slaughtering), where the scheduled activity thresholds are met.
• Contractors: Environmental obligations and licence duties can’t be delegated or transferred unless legislation expressly provides for it, so businesses (or licensees where relevant) remain responsible even when using third parties.
• PEPs: Protection of the Environment Policies (PEPs) can apply more broadly beyond public authorities. Industry and the regulated community, including holders of environment protection licences, may be required to comply with a PEP where they are carrying out any activity specified in a PEP. A PEP will be able to set expectations for industry sectors that will apply to the carrying out of those activities. 

The above changes commenced on 12 December 2025. Potential licensees as a result of these changes have until 12 September 2026 to apply for a licence.   

For further detail on the changes, and how they may affect you, please visit the Environmental Legislation Amendment Act page or write to the EPA at engagement@epa.nsw.gov.au. 

New Rules for Tradies and Building Professionals (July 2026) 

From 1 July 2026, repair and renovation work on Class 3 and 9c buildings, such as boarding houses, group homes, some residential care facilities, will fall under the Design and Building Practitioners (DBP) regime. 

If you’re a builder, engineer or specialist contractor: 

You’ll need: 

• Registered design practitioners for certain work
• Regulated designs lodged through the Planning Portal
• Higher documentation and compliance standards 

This reduces risks for consumers, but small contractors will need to factor compliance tasks into quoting, project planning and insurance costs. 

Find more information on the changes at the NSW Government website: 

• Update on amendments to building regulations | NSW Government
• Remedial building work in regulated buildings | NSW Government 

Mandatory Professional Indemnity for NSW Building Practitioners (1 July 2026) 

From 1 July 2026, all registered building practitioners in NSW will be required to hold Professional Indemnity (PI) insurance under the Design and Building Practitioners Act 2020. The policy must provide an adequate level of indemnity cover for liabilities that could arise from the building work they undertake, aligning insurance requirements with the state’s wider push to improve construction quality and consumer protection.  

More information is available at Update on amendments to building regulations | NSW Government 

Strata and Community-Land Reforms Mean New Expectations for Contractors (1 April 2026) 

Lots of small businesses work with strata and community schemes: plumbers, electricians, landscapers, painters, cleaners, maintenance providers, and specialist trades. 

From 1 April 2026: 

• Strata schemes must use new standardised 10-year capital works fund plans. The prescribed 10-year capital works fund plan form can be found here: NSW Government Gazette No 351 of 29 August 2025
• Multi-storey schemes’ initial maintenance schedule (IMS) and initial strata levy estimates need independent surveyor reviews and certification.
• Original owner (usually developer of builder) to give evidence of independent surveyor review and certification 14 days before the first annual general meeting.
• Details of exclusive supply (embedded) networks to be included in strata information certificates. 

Why this matters to small business: 

• More schemes will prepare long-term maintenance budgets, meaning more predictable work pipelines for trusted contractors.
• Standards for documentation and reporting may increase.
• The amendments will also apply to community schemes.  

The shift is towards transparency, planning and routine maintenance, will favour reliable small operators that can demonstrate professionalism and compliance standards. 

Find more information on the NSW Government website: Changes to strata laws | NSW Government 

Strata Building Bond Increase to 3% (1 July 2026) 

The strata building bond for eligible new apartment buildings rises from 2% to 3% from 1 July 2026. 

Why it matters for small business 

• For builders, developers and specialist trades, quoting and cashflow management will need adjusting.
• For strata-services operators (cleaners, plumbers, waterproofers, electricians), better defect management often means more predictable work pipelines. 

Read more about the Strata Building Bond Increase at Update on amendments to building regulations | NSW Government 

Childcare Sector Operators: New National Quality Standard (1 January 2026) 

If you run an early childhood service, note that child-safety requirements under the National Quality Standard are being strengthened. 

From 1 January 2026: 

• Updated child safety standards apply to all NSW early education and care services.
• Policies, staff training, incident management and risk systems must be reviewed. 

Compliance will take effort, but this reform builds trust with families which is core to maintaining enrolments. 

More information is available at NQF child safety changes from 1 September 2025 and 1 January 2026 | ACECQA 

New Rules for Community and Family Support Providers (1 January 2026) 

For NGOs, charities and small service providers funded by NSW Government departments, the new Community and Family Support (CAFS) program begins 1 January 2026. 

This means: 

• New program specifications
• New outcomes and reporting requirements
• Transition from the Targeted Early Intervention (TEI) and Family Connect Support (FCS) frameworks 

If your organisation runs family support, youth programs or early intervention services, 2026 will be a significant transition year. 

More information is available at: Community and Family Support Program Specifications | Communities and Justice 

Merger Approval Rules Tighten (1 January 2026) 

Most small businesses won’t deal directly with the mergers framework, but many will feel indirect effects. The merger control regime aims to identify and prevent anti-competitive acquisitions, while allowing those that do not raise competition concerns to proceed as quickly as possible. 

From January 2026, Australia moves to a mandatory, suspensory merger clearance regime, meaning large acquisitions must be approved by the ACCC before going ahead.   In practice, this means acquisitions that meet the notification thresholds can’t complete until the ACCC has reviewed and cleared them, replacing the old, largely voluntary informal process with a ‘notify first, close later’ system for major acquisitions. 

This is likely to: 

• Prevent large corporates from rapidly consolidating local markets
• Create breathing room for SMEs in sectors like retail, childcare, aged care, agriculture, pharmacy and construction supplies
• Provide greater certainty for small businesses negotiating with major players 

It’s one of the biggest competition reforms in decades. 

Further information is available on the ACCC’s website at Merger control regime | ACCC