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The Future of Super: Payday Super

On the 2nd of May 2023, the Australian federal government announced Payday Super. What is it, and how will this proposed change in legislation affect employers, employees and payroll software providers?

Beam makes Payday Super simpler

During the federal Budget the Australian Treasury announced potential legislation that as of 2026, Australian employers will be required to pay super into their employees chosen fund at the same time as processing salaries. Payday Super is an effort to reduce an estimated $3.4 billion AUD worth of missed super payments in 2019-2020¹. Included in the statement for Payday, further resources will be made available to the Australian Tax Office (ATO) to aid in their ability to detect and recover unpaid super payments. Currently quarterly super payments are a minimum requirement for Australian businesses, although some larger organisations do already align super contributions with payroll schedule. This change has the potential to impact payroll software providers who are not equipped to take on these changes. Legislative changes can disrupt a software company, adopting new technology and ideas should be a priority to keep employers using software fit for purpose and prepared for the future.

Payroll Platforms can grow

With potential to disrupt existing payroll processes, the proposed changes with Payday Super could be a great opportunity for software providers to enhance their product and grow their client base. For the 2021-2022 financial year, 891,000 Australian employers reported their super obligations through a Single Touch Payroll (STP)². In the 2021-2022 financial year, 17,300 cases of unpaid super that were raised with the ATO resulting in $215 million of fines being issued and $550 million of Super Guarantee Liabilities being raised³. With the potential of added compliance requirements on employers and payroll software, this figure could grow. The team at Beam want to work with payroll platforms to see this figure decrease. Payday Super brings the opportunity for software providers to improve the compliance flow for employers by providing simple, easy and compliant software for making regular super payments and STP reporting. Beam can provide STP solutions or provide a clearing house service for super payments without the need to develop considerable functionality into an existing payroll platform. This proposed legislation would put the spotlight on the usability of payroll platforms, Payday Super means more super contributions and higher usage of payroll software.

Find out how Beam helped make super simpler for our partner Myaccountant


Payday puts Payroll Software in the spotlight

With proposed legislation not taking effect until 2026, we want to highlight the importance for software providers to plan ahead for potential changes to come. Payday Super at its simplest is employers paying smaller super contributions more regularly. This proposed change could make payroll platforms a hive of activity. Employers could potentially be using their payroll system more regularly when super is required to be paid alongside regular pay period. Increases in traffic and usage alongside changes to legislation and requirements on payroll platforms can put software providers in a difficult position if not prepared. So how can Beam help payroll platforms prepare for Payday Super?

The impact of Payday Super is yet to be understood for employers, the Australian Treasury is set to engage with leaders and stakeholders in the latter half of 2023⁵. Software providers have Beam to rely on while the finer details of Payday Super are finalised. We can help develop features and functions that can support employers now and for the future. Payday Super potentially requires employers to make super payments whenever they pay their employees. Streamlined and simple user experience paying super could be a big focus for employers in need of payroll software. Beam is an ideal partner for software providers and their customers to deliver a user focused solution to paying super, simpler.

Beam integrates with payroll for simpler super

If speed and usability are improvements required to keep up with potential demand on software, a super payment solution integrated directly into payroll platforms is a big point of difference. Beam does away with data extracts, external portals and paperwork for employers. This means payroll software suppliers can provide employers with a smooth and user-friendly payment system for making super contributions.

Upfront validation, data security and compliance reassurance

With super contributions potentially being made on a significantly larger scale by employers, how payroll software handles data is important. When partnered with Beam, employer contribution data is validated prior to submitting to reduce exceptions. This upfront data validation can prevent issues and errors before submitting payments. Employers also receive contribution and payment notifications which will allow tracking every step of the way. Beam can also provide employers with comprehensive payment history and error handling.

Super compliance for employers and payroll software

Payday Super comes with many potential benefits for the average Australian employee; particularly those who work in casual or insecure roles receiving infrequent pay. With Payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement. This likely boost for an employee’s super savings does put an emphasis on the need for employers stay on top of their obligations, remain compliant and up to date with everything about payroll. Employers using a payroll software partnered with Beam can rely on our experience and longstanding reputation as a clearing house and STP provider to stay ahead of legislative changes to remain compliant. With an increased focused on super from regulators, Beam’s track record and experience shows that we’re committed to support employers and the payroll industry. Supported by one of Australia’s largest superannuation funds, Australian Retirement Trust, Beam is a partner that can rely on now and into the future.


Partner with Beam to stay on top of Payday Super

If the proposed legislation changes take effect, payroll software providers can take control of how this proposed legislation will change the payroll industry. Partnering with Beam gives employers the tools they need to make paying super simple, regardless of what the future may bring. Follow our easy four step process to start the journey to a better payroll solution for employers.

Step 1.

Sign-up as a Beam partner. We’ll then contact you to connect to Beam via a secure API. Access features that best suit your needs and work with your user interface.

Step 2.

Once Beam is integrated in your software platform, onboarding your employer clients is made easy with a suite of marketing and onboarding collateral.

Step 3.

Sharing our successes, together. Partnering with Beam means you’ll be visible to more than 100,000 employers as part of our payroll network communications.

Step 4.

As you grow, we grow. Helping you grow your customer base allows us to invest more in developing Beam and offer more features and benefits to your customers.


¹Australian Taxation Office (ATO) estimation as published 2 May 2023
²ATO super compliance snapshot, 23 November 2022
³These fines are a result of late payments or penalties enforced by the ATO, super guarantee annual employer compliance results, 23 November 2022
At time of writing Payday Super has not passed as legislation and is still a proposed bill, June 2023
⁵As announced by the Hon Jim Chalmers MP, Treasurer 2 May 2023
Statistics found in media release from The Hon Jim Chalmers MP, Treasurer 2 May 2023