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Payday Super intentions good - but concerns remain over the practical reality of implementation

CPA Australia

9 October 2025

Payday Super intentions good – but concerns remain over the practical reality of implementation

The requirement that employers pay their employees’ superannuation contributions at the same time as their salary is a positive move that could help secure retirement savings. However, concerns remain over how the new regime will work in practice, as well as the impact it will have on small business, says Australia’s largest accounting body, CPA Australia.

Responding to the introduction of Payday Super legislation today (Thursday), CPA Australia’s Superannuation Lead, Richard Webb, said the current requirements on employers to only ensure they pay super contributions every quarter is outdated and troublesome, so the government is right to push ahead with the reforms.

But he warns that the potential for unintended consequences is high, most notably the stress on small business cashflow and the impact of penalties for mistakes during the transition to the new regime.

“Some small businesses will face significant cashflow challenges as they adjust to the new regime,” he said. “This may be another compliance headache that many small businesses will struggle to cope with in such a short space of time.

“We are pleased that the government has heard our calls for more proportionate penalties for small businesses who fail to immediately comply with the new rules.

“We welcome the assisted compliance period contained in the draft guidance released today by the ATO, but note that it is not the same as if the Bill formally allowed businesses time to adjust.”

CPA Australia had encouraged the government to delay the rollout of Payday Super for up to two years to give the superannuation industry and businesses sufficient time to prepare to meet the new requirements. 

In addition to concerns that the superannuation transmission network may not be ready to manage the increased traffic by July next year, CPA Australia also warned that many employers will need time to understand the new rules and adjust their payroll processes to comply on time.

“The new regime will be challenging for some big businesses, but small businesses will be particularly impacted by the change, all while dealing with ongoing challenges in the business environment including rising costs and increasing regulation,” Mr Webb said.

“The regime requires considerable upfront cash flow and system changes, posing difficulties for small businesses that lack the resources and technological proficiency to adapt swiftly.

“Advisors and accountants will play a critical role in the transition as they provide support and education to their small business clients.

“The start date of July 2026 remains a major challenge. A period of chaos could ensue as businesses try to fulfill their compliance obligations while trying to balance their books.”

About us:

About CPA Australia   

CPA Australia is Australia’s leading professional accounting body and one of the largest in the world. We have more than 175,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au

Contact details:

Simon Downes, External Affairs Lead, [email protected] or 0401 461 503