Payday Super Implementation Concerns

Background

It has been 444 days since Assistant Treasurer Stephen Jones announced Payday Super in the 2023-24 Federal Budget and 400 days since consultations began with digital service providers (DSPs), professional associations, and the superannuation industry. Despite this, we still lack clarity on the technical and operational aspects of Payday Super and how to integrate it into payroll and superannuation software.

Current Situation

No official updates from the government since the announcement. The Assistant Treasurer continues to refer to the 1 July 2026 commencement date without providing detailed information. The software industry needs more than a brief mention in last year’s Budget and an outdated press release to proceed.

Consultations

DSPANZ has participated in numerous Treasury and ATO consultations over the past 18 months. These discussions have produced no documented outcomes to share with our members or broader stakeholders.

Key Concerns

• Lack of legislative and technical clarity
• No feedback on industry suggestions

Impact

• Without clarity and transparency from the Government, Treasury, and ATO, we cannot develop a system to help employers meet their legal obligations.
  
• The business software industry can handle large-scale changes, but successful programs require a genuine partnership between industry and government, grounded in respect and transparency.
  

Urgency

It has been 400 days, and there is still no concrete information to guide our planning. Development timelines are tightening, and without legislation and ATO technical specifications, no commercial enterprise can invest. A roadmap, realistic timeline, and transparent consultation process are essential.

DSPANZ's Core Position

• The timeframe for designing and implementing Payday Super is unrealistic.
  
• Based on current policy and consultation processes, we anticipate less than 12 months to build software and transition all employers and employees to Payday Super.
  

Proposals:

• Option 1: Maintain the 1 July 2026 date but reduce the scope of what can be reasonably delivered by this date.
  
• Option 2: Push the commencement date to at least 1 July 2028 and consult with industry more effectively.
  

For further details, please refer to our submission from 3 November 2023 which outlines these viable options for moving forward with Payday Super.