Payday super is coming… but the experts say ‘let’s not rush it’

The government’s payday super reforms have been given the thumbs-up by Australia’s top accounting bodies—but there’s a catch. They’re saying, “Great idea… but can we hit the snooze button for a couple more years?”. 

Chartered Accountants ANZ (CA ANZ), along with a bunch of other key financial bodies, has called on the government to delay the rollout of payday super for two years. Why? Because they reckon small businesses just aren’t ready yet—and trying to race it through could cause more harm than good.

What is payday super, anyway?

Under the current system, employers only have to pay super quarterly. But under the proposed reforms, you’d need to pay super every time you pay wages—so weekly, fortnightly, or monthly depending on your payroll cycle.

Sounds straightforward, right? In theory, yes. But in practice, super payments involve more fiddly steps than a standard salary payment. You’ve got to deal with clearing houses, meet specific fund requirements, and align your software. And let’s not even start on what happens if there’s a typo in someone’s super fund details.

A good idea… just not yet say experts

Simon Grant, Group Executive at CA ANZ, says payday super is a “significant reform” that will ultimately benefit workers—and they fully support the idea. But he’s also waving the warning flag.

“Employers, payroll systems providers, super funds and other important stakeholders need time to make the tech changes and process improvements,” Grant says.

Rushing into payday super without proper prep could lead to mistakes, delays and compliance headaches—especially for time-poor micro and small business owners juggling a million other things.

That’s why CA ANZ and seven other peak bodies (including CPA Australia, the Tax Institute, and the Institute of Public Accountants) have put forward a joint submission to the government, with 22 recommendations and one big ask: give us a two-year buffer.

Why small biz owners should prepare

If you’re running a small operation, this change means you’ll need to pay super more frequently and make sure your systems are up to scratch. That might involve updating your payroll software, training your staff (or yourself), and making sure your cash flow can handle more frequent outgoings.

And if you’ve ever been caught out by super deadlines before, you’ll know the ATO doesn’t muck around when it comes to late payments. Miss one, and you can end up with extra admin, fines, and no tax deductions. Ouch.

So while the call for a delay might give you a bit of breathing room, it’s still worth getting ahead of the game now. Review your payroll system, talk to your accountant or bookkeeper, and get a plan in place. Because whether it starts next year or in two years, payday super is coming.

The benefits

Payday super is one of the biggest changes to superannuation in years. It’s designed to improve outcomes for workers—but it’ll also bring a raft of new responsibilities for business owners.

The experts agree the reform is a step in the right direction, but a rushed rollout could leave many small businesses scrambling. A two-year delay could help everyone get their ducks in a row.

In the meantime, if you’re a business owner, don’t wait until the last minute. Use this heads-up to check your systems, ask the right questions, and make sure you’re ready to roll—whenever the government hits ‘go’.

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