As Chris Jewell reports, the introduction of the proposed 'Payday Super' legislation marks a significant and welcome milestone for Australia's financial ecosystem.
At Zepto, we see Australia’s Payday Super reform as a pivotal step towards creating a more equitable, transparent, and modern payments landscape for businesses and employees alike. We are proud to be a part of the fintech community that supports this positive change.
When passed, the legislation will require employers to pay superannuation contributions at the same time as an employee's salary and wages – a common-sense reform expected to deliver far-reaching benefits for workers, businesses, and the broader economy alike.
Zepto welcomes the government’s Payday Super policy. This is an important reform that will transform how Australia pays superannuation; linking contributions to each pay cycle means money hits employees’ superannuation fund accounts sooner, compounds for longer and reduces unpaid super.
What Payday Super Means for Australian Workers
For millions of Australians, this reform is about more than just a change in payment frequency—it's about strengthening their financial future. The current quarterly payment model has historically created an opportunity for underpayment and fraud, leaving an estimated $3.4 billion in unpaid super in 2019-20 alone.
The Path to Implementation: A Call for Collaboration
While the benefits are clear, we understand that this change represents a significant shift in cash flow and administrative processes for businesses. Successful implementation at scale will depend on a collaborative effort.
To deliver those benefits at scale, implementation must be practical and sequenced across all participants in the super contribution supply chain: the ATO, funds, gateways and payroll providers. Data quality and validation will also be critical to the success of Payday Super: government needs to invest in upfront data services that support employers to get it right the first time. That means providing employers access to accurate and up to date information that will enable super contributions to be processed the first time and every time.
Solutions in this space that capture payroll and super will be customised, of course, requiring a composable solution across both the real-time NPP rails and the legacy BECS rails to deliver the right outcomes for different providers. There's another factor here, too. We expect the nascent Confirmation of Payee service to deliver in spades as it becomes a critical tool ensuring data accuracy early in the flow.
At Zepto, our platform is purpose-built to handle the increased frequency and volume of payments that Payday Super will introduce. We enable businesses to make secure, instant payments directly to super funds, ensuring contributions are received within the required seven-day window.
Encouragingly, Zepto’s first real-time superannuation payment was successfully processed in 2023 via our partnership with digital service provider, Ozedi — proving the capability already exists when innovation and regulation align. The focus now must be on scaling that capability safely, reliably and inclusively so every employer and employee benefits.
By integrating superannuation payments with a business's regular payroll cycle, we can help:
- Simplify Cash Flow Management: Instead of managing large, lumpy quarterly payments, businesses can spread their superannuation obligations across their regular pay cycles. This provides more predictable and manageable cash flow.
- Automate Compliance: Our solutions can automate the process of calculating and remitting super contributions, reducing the administrative burden and the risk of costly penalties from late or incorrect payments.
- Enhance Efficiency: We enable businesses to make secure, instant payments, a capability that will be crucial for a seamless transition away from the ATO's Small Business Superannuation Clearing House (SBSCH).
A Partnership for Progress
The Payday Super reform is more than just a regulatory change; it is a collaborative effort to modernise Australia's financial system. It requires innovation from financial service providers and a proactive approach from businesses.
Zepto stands ready to work with payroll and super providers to turn Payday Super from compliance pressure into better payment experiences for every Australian business.
We’re ready to work with businesses to prepare for the new Payday Super landscape, supporting a smooth transition to a system that helps build a more secure and prosperous future for all Australians.
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