NSW employers will see a notable change to their public holiday schedule in 2026 and 2027. The NSW Government has confirmed that since Anzac Day falls on a weekend for this year and next, on Saturday 25 April 2026 and Sunday 25 April 2027, a statewide extra public holiday will be observed on the following Monday. This arrangement is temporary and will be reviewed after the trial period.

For NSW businesses and SMEs, the introduction of a new Monday public holiday brings operational, financial and compliance considerations. Here’s what business owners should focus on now to stay prepared and compliant.

 

1. Payroll - update systems early to prevent errors

The additional Monday public holidays on 27 April 2026 and 26 April 2027 must be treated as standard public holidays for payroll purposes.

Employers should now:

  • Update payroll systems and calendars to reflect the new dates

  • Check the award or enterprise agreement conditions for relevant public holiday penalty rates

  • Review cross-jurisdiction payroll impacts, as other states and territories manage substitute Anzac Day arrangements differently (e.g., ACT Monday-only; WA both Saturday and Monday).

Planning early helps avoid payroll errors that can lead to backpay obligations or compliance breaches.

 

2. Rostering - prepare for two public holidays in one weekend

NSW businesses will effectively navigate two public holidays in the Anzac weekend:

  • The traditional Anzac Day (Saturday or Sunday, depending on the year)

  • The additional Monday public holiday.

Employers should:

  • Begin roster planning early, especially for sectors operating seven days.

  • Consult with staff about availability across the long weekend.

  • Issue draft rosters or formal written requests for public holiday shifts, as recommended by best practice.


Remember: under the Fair Work Act, employers can request, not require, employees to work on a public holiday. Employees can refuse if the refusal is considered reasonable.

 

3. Public holiday penalty rates - budget for higher wage costs

The additional Monday public holiday triggers full public holiday penalty rates across applicable awards and agreements.

This means:

  • Additional labour costs for Monday shifts

  • Increased overtime loading for employees working both Saturday/Sunday and Monday

  • For some employers, increased payroll tax liabilities depend on wage thresholds


Review your staffing model now to ensure the additional public holiday doesn’t create unexpected financial strain.

 

4. Leave entitlements - understand how Monday interacts with annual leave

The Monday public holiday operates the same as any other public holiday. This means:

  • Employees on annual leave must be paid for the public holiday, and not have it deducted from their leave balance.

  • If employees request to take extended leave around the long weekend, employers should plan for staffing gaps early.

Additionally, since restricted trading rules still apply on Anzac Day itself but not on the Monday, some retail and hospitality businesses may find leave requests more concentrated around the Monday.

 

5. Trading hours and operational impacts

Anzac Day remains the official day of commemoration, with restricted trading applying on the Saturday/Sunday in line with current rules. However, the Monday public holiday has no Anzac-specific trading restrictions as it is treated like a normal public holiday.

This provides more flexibility for operations on Monday, but employers should still anticipate increased labour costs due to penalty rates.

 

6. Cross-state considerations for multi-jurisdiction employers

If your operations or workforce span multiple states:

  • Payroll must reflect differing public holiday arrangements.

    • ACT: Monday only public holiday

    • NT, QLD, SA, TAS and VIC: Saturday only. There is no Monday substitute.

    • WA: Saturday and Monday are public holidays

Failure to align state-by-state compliance may result in overpayments, underpayments, or both.

 

7. Budgeting and financial readiness

Given that public holidays add measurable cost to SMEs, employers should build the Monday public holiday into their:

  • Annual budgeting

  • Labour forecasting

  • Cash flow planning

The NSW Premier has recognised that the extra holiday might add strain to small businesses, but the government has framed it as a temporary trial.

 

What employers should do now

To stay compliant and prepared:

  1. Update rostering and payroll systems with the 2026 and 2027 dates.

  2. Communicate with employees early about expectations and scheduling.

  3. Review awards and agreements to confirm penalty rates and entitlements.

  4. Assess operational impacts, including trading hours and staffing models.

  5. Budget for increased wage costs across the long weekend.


Need help navigating the changes? Contact the Workplace Advice Line

If you’re unsure how these new public holiday arrangements relate to your business or need help reviewing entitlements, our Workplace Advice Line is here to support you. Our advisors can assist you in interpreting award and/or enterprise agreement obligations.

Our advisors can also provide guidance on overtime, leave entitlements, proper procedures for termination or redundancy, and much more.

Contact the Workplace Advice Line today for personalised support and peace of mind.