Pay Day Superannuation: What You Need to Know Now

The Australian Taxation Office is introducing the biggest shift to superannuation in years, moving from quarterly payments to a "Payday Super" model. Linda Dang, CEO of e.Advisory, joins Phil Di Bella to explain how hospitality businesses must adapt their cash flow and payroll systems before 1 July to avoid daily compounding penalties.

WHY LISTEN

Understand the Mandate: Learn exactly what Payday Super means for your weekly or fortnightly pay cycles.

Avoid Penalties: Discover how the ATO's new penalty regime compounds interest on a daily basis for late payments.

System Upgrade: Identify which payroll softwares automate award compliance and super distribution.

Cash Flow Strategy: Get practical advice on transitioning your bank balance to handle more frequent outflows.

Data Integrity: Understand why the 28-day "buffer" for fixing errors is disappearing.

KEY TAKEAWAYS

Start Early: Do not wait until 1 July; implement payday super payments now to identify system errors and adjust cash flow expectations.

Audit Your Data: Ensure all employee TFNs and super fund details are 100% accurate, as "bad data" is the primary cause of payment failure.

Use Modern Payroll: Transition away from manual tracking to software like FoundU, Tanda, or Deputy to manage complex hospitality awards and automated super calculations.

Prepare for the Double-Hit: In July, businesses must pay both the final June quarter super and the new payday super simultaneously.