iscoverAccounting industry bodies have called on the ATO to extend compliance support for employers ahead of incoming payday super requirements.
Payday Super transition must be 'fair and practical', CPA says
11 November 2025
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8 minute read
On Monday (10 November), industry bodies CPA Australia, CA ANZ and The Australian Bookkeepers Association called on the ATO to implement a 24-month transitional compliance period for incoming payday super laws, to enable a smoother transition for employers.
“Payday Super is a positive step for workers, but the transition must be fair and practical for employers,” Richard Webb, superannuation lead at CPA Australia, said.
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“Many businesses will need to overhaul payroll systems, change clearing houses, and retrain staff – all within a short time frame. We’re calling for a longer compliance window and clearer guidance to help employers get it right.”
The Payday Super bill, also known as the Treasury Laws Amendment (Payday Superannuation) Bill 2025, passed parliament on 4 November. The new legislation, effective from 1 July 2026, would require employers to make superannuation contributions for their employees at the same time they pay their salary or wages.
The bill was introduced to address the issue of unpaid super, which disproportionately affected vulnerable workers, Treasurer Jim Chalmers has noted.
Mary Delahunty, chief executive of the Association of Superannuation Funds of Australia (ASFA), said the super sector commonly saw more than $5 billion in retirement savings withheld from Australian workers each year.
While the professional community has welcomed the bill, industry advocates have called for greater transitional relief to allow small businesses to adapt. CPA Australia said it backed the ATO’s risk-based compliance approach for the first year of payday super, but recommended that the transitional relief should be extended to 30 June 2028 to allow employers more time to adapt.
“Around 250,000 employers currently use the Small Business Superannuation Clearing House, which won’t be compatible with Payday Super,” Webb said.
“These businesses will need to find new providers and ensure their systems are compliant – that’s a big ask in a short time.”
CPA called for a longer transitional period, clearer definitions of terms such as ‘reasonably practicable,’ and greater clarification of the role of voluntary disclosure statements.
The industry body also suggested that ATO-led nudge messaging could help employers monitor their super guarantee payment timing and system performance. It added that clearer relief should be available to employers affected by fund mergers, incorrectly rejected contributions and third-party delays.
CPA added that it would support reforms aligned with the government’s ‘tell-us-once’ approach to minimising regulatory duplication.
“Employers shouldn’t be penalised for delays caused by systems outside their control,” Webb said.
“We want to see a compliance framework that supports genuine effort and collaboration, not one that punishes complexity.”
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