News
by Beam
|04/11/2024
With the proposed introduction of payday super less than two years away, the federal government has released new details about the implementation of the scheme.
From July 1, 2026, employers will need to pay super at the same time as they pay salary or wages, and super guarantee (SG) contributions will need to arrive in an employee’s super fund no later than seven calendar days after payday.
If that doesn’t happen, the employer will pay an updated SG charge. This charge will force employers to fully compensate employees for any delay in receiving their super, include a fee for administration enforcement, and scale up for employers who repeatedly miss the deadline.
In addition, the ATO’s Small Business Superannuation Clearing House will be retired when payday super comes into effect. This is a reflection of the rise of cost-effective and fit-for-purpose payroll software solutions, the government says. What it means is that those businesses that don’t have an effective software solution will need to get one – fast.
With new obligations around the corner, the threat of financial penalties for non-compliance, and the retirement of the clearing house, employers will be looking for a solution that can help them make more frequent super contributions as quickly and efficiently as possible. And they will expect payroll software providers to provide them with that solution.
This is where Beam comes in.
Beam is a supertech solution that sits within payroll software and makes super payments effortless for employers.
Software providers can embed it into their platforms to give employers a ready-made, compliant, easy-to-use super payments platform. And it’s ready for payday super right now.
“A lot of employers still rely on manual and inefficient payroll processes,” says Mathew Gilroy, Founder at Beam and Head of Employer, Platforms and Partnerships at Australian Retirement Trust (ART). In Beam’s whitepaper Payday Super and the benefits of payroll integration, Gilroy says that with the introduction of payday super, that reliance on outdated methods will need to change.
“Employers simply won’t have time to bounce between different solutions … To pay super at the same time as wages, payroll details and super information need to be connected and integrated as much as possible.”
July 1, 2026, isn’t far away, Gilroy warns. “A manual solution won’t be as effective as an integrated solution in the payday super environment, and there’s not a lot of time for payroll providers to adopt a more modern approach.”
Beam is embedded into payroll software. If employers use Beam, they no longer need to move off payroll to make super payments through a separate platform.
By adopting Beam’s super payment tech, software providers can give their clients an integrated solution that combines super reporting, onboarding and payments all in one place – automating processes, removing inefficiencies, and saving them time and money.
“Some employers have teams that do all this stuff,” Gilroy says. “And some employers are actually business owners who are flat out trying to keep on top of compliance obligations.”
Beam provides time benefits for both, he says.
“It gives a team the opportunity to work on more value-added services. For a business owner, it gives them time back so they can run their business and focus on all 100 other tasks that they have.”
Data transfer is more accurate and efficient, too. With upfront validation, employers can fix mistakes before they submit payments. There’s no limit to how many employees, super funds or transactions Beam can handle. And if it spots a mistake, you can hold up that one payment for investigation, while continuing to process the rest of the batch.
With payday super set to increase the volume, frequency and complexity of super payments – and with non-compliance incurring financial penalties for employers – Beam’s integrated solution is likely to be in high demand.
Software providers who fear they are running out of time to be ready for payday super can team up with Beam right now, Gilroy says.
“You could have Beam in and rolled out to employers well in advance of payday super,” he says.
“That would give you a native engine that’s prepared for the ability to pay superannuation on a more frequent basis in alignment with wages, and also give you the confidence that the data flowing into single touch payroll reporting and a number of other employer obligations is high quality, which is only going to increase the value proposition for software providers and the confidence of employers as they go into this change. I think that’s good for everyone.”
Innovative and future-focused, Beam is also ready to take on any changes that lie ahead as super continues to evolve.
Payday super is being introduced to reduce the underpayment and non-payment of super. An estimated 8.9 million employees are expected to benefit. And more changes to super are inevitable as the government addresses inefficiencies in the system and aims to improve Australians’ retirement futures.
“Super will continue to change fast,” Gilroy says. “The future is going to be ever more rapid, timely and automated.”
And compliance is going to be carefully monitored. “By the sheer push of government legislation alone, employers are going to find themselves under closer scrutiny from the ATO as a result of regulatory changes,” Gilroy says.
For software providers, the lack of detail about payday super may be a concern. But change is also an opportunity. Those that can provide their clients with a solution that simplifies super, that’s ready for payday super and an increasingly data-driven future, will be well ahead of the pack.
Beam’s supertech solution is ready for the future of payday super
Learn more hereThe opinions and comments shared by people in this article are theirs alone, and they’re not necessarily shared by Precision. We don’t take responsibility for how accurate any of this information is and we suggest getting advice tailored to your individual circumstances.
This is general information. It’s not based on the specific objectives, financial situation or needs of your business. So think about those things and read the Product Disclosure Statement before you make any decision about our products. Contact us or your payroll provider for a Product Disclosure Statement (PDS). Beam is issued by Precision Administration Services Pty Ltd (Precision) (ABN 47 098 977 667, AFSL 246 604). Precision is wholly owned by Australian Retirement Trust Pty Ltd (ABN 88 010 720 840, AFSL 228 975), trustee of Australian Retirement Trust (ABN 60 905 115 063).
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