Quarter-million employers face tech upheaval under payday super reforms, with accountants urging extended compliance support through CPA Australia’s Richard Webb.
What’s happening: CPA Australia has joined other professional bodies urging the Australian Taxation Office to extend compliance support to June 2028, warning that 250,000 small businesses using the government’s free clearing house will need to find new providers before the deadline.
Why this matters: The reforms promise better retirement outcomes for workers but demand significant system changes from businesses already juggling complex compliance requirements.
On 6 November 2025, Payday Super received Royal Assent, setting the clock ticking for a transformation that accounting professionals warn could overwhelm small operators.
Richard Webb, Superannuation Lead at CPA Australia, said the reforms represent a major operational shift for businesses and their advisers.
“Payday Super is a positive step for workers, but the transition must be fair and practical for employers,” Mr Webb said. “Many businesses will need to overhaul payroll systems, change clearing houses, and retrain staff – all within a short timeframe. We’re calling for a longer compliance window and clearer guidance to help employers get it right.”
From 1 July 2026, employers will be required to pay superannuation contributions at the same time as salary and wages. CPA Australia has partnered with six other professional bodies to submit recommendations on the ATO’s draft Practical Compliance Guideline, which outlines how employer compliance will be assessed during the first year.
The submission backs the ATO’s risk-based compliance approach but recommends transitional relief be extended to 30 June 2028 to give employers, especially small businesses, time to adapt.
Clearing house closure
The ATO’s Small Business Superannuation Clearing House will be closed from 1 July 2026, forcing businesses that currently use the free service to find commercial alternatives. Mr Webb highlighted this as a particular pressure point.
“Around 250,000 employers currently use the Small Business Superannuation Clearing House, which won’t be compatible with Payday Super,” he said. “These businesses will need to find new providers and ensure their systems are compliant – that’s a big ask in a short time.”
The reforms require employers to ensure that super contributions are received by employees’ funds within seven business days after payday or face the superannuation guarantee charge. Superannuation funds have three business days to reject a contribution if it cannot be accepted.
Extended relief sought
CPA Australia’s submission highlights the need for a 24-month transitional compliance period to 30 June 2028, clearer definitions of key terms such as “reasonably practicable” and clarification of the role of Voluntary Disclosure Statements. The organisation also wants ATO-led nudge messaging to help employers monitor superannuation guarantee payment timing and system performance, along with clearer relief for employers affected by fund mergers, incorrectly rejected contributions and third-party delays.
Mr Webb added that small businesses are particularly vulnerable. “Employers shouldn’t be penalised for delays caused by systems outside their control,” Mr Webb said. “We want to see a compliance framework that supports genuine effort and collaboration, not one that punishes complexity.”
Fair transition urged
CPA Australia also supports aligning the reforms with the government’s “tell-us-once” principle to reduce duplication and administrative burden.
According to the Association of Super Funds of Australia, a 25-year-old median income earner currently receiving super quarterly and wages fortnightly could be around 1.5%, or 6,000 dollars, better off in retirement under the new system.
The submission to the ATO was produced in partnership with The Australian Bookkeepers Association, Chartered Accountants Australia and New Zealand, Institute of Certified Bookkeepers, Institute of Public Accountants, SMSF Association and The Tax Institute.
For small businesses navigating the transition, experts recommend reviewing payroll systems now, exploring commercial clearing house options and seeking professional advice well before the July 2026 deadline to avoid last-minute compliance challenges that could prove costly.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
