RICHARD WEBB says once-in-a-generation reform of infrastructure underpinning the superannuation payments system should be delayed to avoid chaos and confusion.
Amongst all the regulatory pressures facing or soon to be facing small businesses, one of the most significant has gone largely under the radar – Payday Super.
Designed to ensure eligible employees are paid their superannuation entitlements by their employers as part of their regular pay cycle, Payday Super is due to take effect from 1 July 2026. But just over a year out, there are concerns that the superannuation industry, and small businesses, are simply not ready for the change.
What may seem like a simple update to payment processes is much more complicated than many people realise. But inside the industry there is widespread agreement that a delay in the rollout is essential.
That’s why CPA Australia (Certified Practising Accountants), along with several other professional associations, have urged the government to postpone the rollout of the Payday Super regime for up to two years to give the superannuation industry and small businesses sufficient time to meet the new requirements.
Period of chaos
If the timeframe is not extended, a period of chaos could ensue as businesses try to fulfil their compliance obligations through a system that potentially can’t deliver.
There is widespread support for the goals of Payday Super, including that it will be much easier for individuals to monitor their superannuation payments. Currently, employers have up to 28 days to pay super contributions at the end of each quarter, but this will become just three days under the rules of Payday Super.
One of the concerns is that the superannuation transmission network will not be ready to manage the increased traffic by July next year. The network is fundamental to the successful delivery of Payday Super and if it is not adequately prepared for the transition, it would create a perfect storm of confusion and uncertainty for both employees and employers.
The practicalities of delivering once-in-a-generation reform of the infrastructure underpinning the superannuation payments system are extremely challenging.
The weight of expectation on small businesses is another good reason to delay the rollout.
The new regime will be challenging for some big businesses, but small businesses will be particularly impacted by the change. The regime requires considerable upfront cash flow and system changes, posing difficulties for small businesses that may lack the resources and technological proficiency to adapt swiftly.
Small businesses already operate in an environment of intense regulatory burden and this additional requirement will add to this pressure. As such, in addition to delaying the introduction of Payday Super, we believe the government should introduce a grace period to allow employers to receive education and support without immediate penalties for non-compliance.
Delivering Payday Super reliably, fairly and without unintended consequences must be the priority.
Beware of ‘super health check’ scam
Lately I’ve heard reports of individuals receiving unsolicited financial advice relating to the recent drop in superannuation balances caused by global trade disputes.
The superannuation balances of millions of Australians plunged following the imposition of global tariffs by the United States, because the success of many funds is partly linked to the performance of global stock markets.
Super account holders have been receiving unsolicited calls claiming to provide a super health check. These calls include an offer to review the individual’s super fees and insurance costs, as well as their investment options, to help grow their balance.
These unsolicited calls may often be merely unscrupulous but could also be criminal in their intent. There’s a high chance you’ll be getting unlicensed financial advice, or these calls could be designed to steal your personal information – or your superannuation savings.
If you receive a call like this, hang up straight away. The call may come from a withheld number or another suspicious-looking number like a mobile. From the descriptions I’ve heard, the caller will be vague or attempt to skim over where they claim to be calling from, such as using an acronym. They may also ask ‘have you heard about this’ to gauge your level of knowledge about the issue at hand and try to create a sense of urgency that you need to act quickly.
Do not make any decisions about your superannuation without first talking to a licensed financial adviser or your superannuation fund. Australians can get legitimate financial advice about their superannuation and other retirement savings by engaging a licensed financial adviser.
In doing so, individuals are encouraged to check the official Financial Advisers Register on the moneysmart.gov.au website. If you think it could be an attempt at fraud, report it to the ACCC-run Scamwatch at scamwatch.gov.au.
About the Author: Mr Richard Webb is CPA Australia’s superannuation lead. CPA Australia is the nation’s leading professional accounting body. See cpaaustralia.com.au.
