IPA welcomes LNP’s Pay Day Super delay amendments

The Institute of Public Accountants (IPA) has welcomed the Federal Opposition’s proposals to pursue legislative amendments which would delay the implementation of Payday Superannuation for small businesses.

The IPA’s support for the Coalition position comes as the major industry funds continue to press for implementation for Pay Day superannuation from 1 July, next year.

IPA Senior Tax Advisor, Tony Greco referenced the proposed amendments which would delay implementation for businesses with fewer than 20 employees as “recognition of the practical realities of running small enterprises amid rising compliance costs and system change fatigue”.

“We support the intent of Payday Super to improve retirement outcomes for Australian workers,” Greco said.  “However, the one-size-fits-all start date of 1 July 2026 risks overwhelming small employers who are already grappling with system upgrades, cashflow pressures, and resource constraints.”

IPA has long advocated a staggered implementation model, similar to the introduction of Single Touch Payroll, which gave smaller employers additional time to adapt.

“The Coalition’s proposal for businesses with fewer than 20 employees to have more time is a sensible step,” Greco said.  “We also agree with the Coalition’s call to legislate protections for small businesses that have made good faith efforts to comply.”

“The reality is that paying superannuation is far more complex than paying wages. Smaller employers must navigate the frequency of paying employees, software changes, cashflow planning, and new clearing house arrangements — none of which can be implemented overnight.”

Greco added that the reform also affects certain contractors under the expanded definition of employees for superannuation guarantee purposes, further increasing the compliance burden.

IPA continues to urge the government to work collaboratively across the political spectrum to design a realistic implementation pathway that ensures compliance success rather than punitive outcomes.

“Small business owners are not opposed to reform — they simply need enough time and support to do it right,” Mr Greco said.

“Without an appropriate transition period, there’s a real risk of errors, penalties, and system failures that could undermine the intent of Payday Super.”

“As the Coalition noted, the government has ignored advice from the Treasury, which suggests Digital Service Providers require 18 months from commencement of the legislation changes to prepare for implementation.”