Last week, Employment Hero released modelling \u2013 calculated on the average employer size and the average employee salary, according to the provider\u2019s data, as well as current payroll cycles versus the increase in the superannuation guarantee (SG) \u2013 which found that SMBs will require an extra $124,000, on average, in working capital to meet the new Payday Super rules. \n<\/p>\n
This is, the provider said, a \u201cseismic shift\u201d in payroll and compliance requirements due to take effect in less than 12 months. \n<\/p>\n
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While Employment Hero noted it supports the intent of Payday Super, it said legislation is needed to account for how businesses actually operate, so they are not overloaded with unfair risk or cost that could work against the policy objective. \n<\/p>\n
The provider\u2019s CEO Ben Thompson said Payday Super presents a huge opportunity for all Australians, but currently presents an untenable risk for small and medium-sized businesses. \n<\/p>\n
\u201cPayday Super could be the biggest positive change to super since its introduction, but it must be done in a way that doesn\u2019t break small businesses or cost Australians their jobs. Without changes to SuperStream, payments infrastructure and proposed penalties, we risk a system where small businesses are punished for delays outside their control, and that\u2019s simply unfair,\u201d he said. \n<\/p>\n
\u201cThat\u2019s why we\u2019re doing everything we can to support SMBs through this change, including advocating for changes that will reduce the risk of insolvency for SMBs and in tandem, building solutions that are going to make it easier for employers to be compliant, regardless of where the legislation or infrastructure change lands.\u201d \n<\/p>\n
The reform will require employers to pay the SG within seven calendar days \u2013 a 75 per cent decrease in leeway to make payments. According to Employment Hero, one in five of its customers are not prepared to meet that seven-day deadline and one in two feel only \u2018somewhat prepared\u2019. \n<\/p>\n
\u201cMost business owners didn\u2019t go into business because they wanted to manage employment; they want to use their time to do what they love and what they\u2019re passionate about,\u201d Thompson said. \n<\/p>\n
\u201cTwelve months may seem like a long time, but the impact on SMBs and required infrastructure upgrade imposed should not be underestimated. We\u2019re encouraging all businesses to turn their attention to Payday Super and making sure you have the right systems and processes in place to manage the admin and cashflow impacts.\u201d \n<\/p>\n
Perhaps, more worryingly, Employment Hero data suggests that 15 per cent of SMBs are unaware of Payday Super and one in three said they will need to build cash reserves to stay solvent under the changes. \n<\/p>\n
Thompson said: \u201cPayday Super could be the biggest positive change to super since its introduction, but it must be done in a way that doesn\u2019t break small businesses or cost Australians their jobs. \n<\/p>\n
\u201cWithout changes to payment infrastructure and proposed penalties, we risk a system where SMBs are punished for delays outside their control and that\u2019s simply unfair.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Last week, Employment Hero released modelling \u2013 calculated on the average employer size and the average employee salary,…\n","protected":false},"author":2,"featured_media":5281,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,63,99,180],"class_list":{"0":"post-5280","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-jobs","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-jobs"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/5280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=5280"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/5280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/5281"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=5280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=5280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=5280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}