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Business & Finance

Let's get this right: Supporting a better transition to PayDay Super with employers in mind

Successful compliance reform hinges on alignment between policy, software capability, and employer readiness. With PayDay Super, that alignment is still a work in progress. We all want the same outcome, Super paid on time, every time. But achieving that goal takes more than policy. It takes collaboration, co-design, and the time to get it right. ReadyTech is actively engaging with industry and government stakeholders to help shape the successful rollout of PayDay Super. 

Advocating for thoughtful implementation 

 

The success of the PayDay Super transition depends on its ability to be effective from day one while also scalable, sustainable and supportive of employers. To achieve this, a longer co-design period is preferable. Extending the timeline will allow for a smoother and more effective transition for all stakeholders. We’ve seen this play out before, previous policy changes regarding Single Touch Payroll Version 1 and the original Super Stream implementation have demonstrated the value of thoughtful and collaborative rollouts and help to make a strong case for allowing the sufficient time needed to get it right this time too.  

Proposed changes 

 

The proposed changes to STP and SuperStream for PayDay Super are significant. The ATO’s adjustments to STP messaging, particularly regarding the reporting of Ordinary Time Earnings (OTE) or Qualifying Earnings (QE), introduce complexity that many employers may struggle to navigate. OTE remains a difficult concept, and confusion over terminology differences between the ATO and Fair Work has already led to employers over-reporting Super just to avoid underpayments. 

Meanwhile proposed updates to SuperStream aim to improve data validation and error handling. Both of which are changes we welcome. Development planning can only be finalised once specifications are released, and we’re prepared to act quickly once that happens. 

As such, time is needed for employers to clarify these changes. Even the government’s impact statement indicates an “official” co-design process period of two years, the start time from which can only be identified following the actual pass of legislation. While this is important to acknowledge, we must also be prepared to act quickly regardless of the timeline.  

Potential Impact 

 

The reality of the potential impact of the PayDay Super reaches far beyond technical adjustments. 

Firstly, the impact on long development lead times and existing commitments is that there will be a commercial impact, with many organisations not able to fulfil other planned commitments. 

Secondly, there is the need for education tools and support for employers. Based on previous compliance changes, we conservatively estimate every employer will need to engage their payroll support services even where there are well documented training materials provided. An impact significantly greater than the government estimates suggest. Employers need time and resources to understand their obligations, reconfigure systems and ensure accuracy. 

Let’s get this right, together 

 

PayDay Super represents a major change for employers. Let’s take the time to get it right with input from the people and platforms who’ll help deliver it. They key is making sure customers voices are heard and that everyone is prepared for a successful transition. ReadyTech is committed to delivering for our customers, regardless of the timeline. However, we believe that a longer, collaborative co-design period will lead to better outcomes for everyone involved.