Group overview
This was the first meeting of the Payday Super Working Group. Members discussed the purpose and expectations of the group, including the scope, charter, meeting cadence and membership.
The group will provide advice on the end-to-end administrative solution for payday super and delegate detailed design issues to technical working groups for deliberation and reporting back.
In determining membership of the group, the ATO engaged with existing stewardship and consultation groups to seek industry nominations. The ATO considered the broad range of expertise, knowledge and experience of all nominees across different sectors with relevance to the purpose of the group.
Smaller technical sub-working groups will be formed in future. This will provide opportunities for consultation with additional stakeholders.
The charter was endorsed by the group, pending updates captured in action item 20241108_01.
|
Action item |
20241108_01 |
|---|---|
|
Status |
In Progress |
|
Responsibility |
Megan Micallef |
|
Description |
Update Charter scope statement and information about the distribution of key messages. Re-circulate charter to all members once updated. |
Payday Super scope
The group discussed an overview of the scope of Payday Super, as set out in the Treasury fact sheetThis link will download a file (PDF 256KB)This link will download a file.
A technical working group to support the SuperStream changes has commenced. We have been engaging with industry to work out the required changes. This group includes a wide range of representatives from the Super ecosystem.
It is expected a technical working group for the Single Touch Payroll (STP) reporting changes (mandated reporting of both ordinary times earnings and total super liability) will be formed soon.
The Treasury fact sheet refers to revised Choice of fund rules to make it easier for employees to nominate their preferred super fund when they start a new job. The scope of this change will not make any changes to the existing ATO stapling service. The change will allow employers to show an employee's existing stapled fund to them as part of the onboarding process. It is expected these will be minor changes to the choice rules. There will not be a new onboarding service delivered by the ATO. Members raised concerns with the existing service and whether it will meet the needs of a Payday environment.
A roadmap is being developed by the ATO to outline the areas where there is certainty regarding timeframes for delivery and those where there are legislative dependencies.
|
Action item |
20241108_02 |
|---|---|
|
Status |
In Progress |
|
Responsibility |
Naomi Westwood |
|
Description |
Develop a roadmap to outline the legislative dependencies and the timeframes for delivery. Provide to the group for feedback. |
Policy
An overview of the Payday Super policy, currently being drafted by Treasury was discussed. The 3 main concepts covered by the fact sheet:
- What Payday super means about when to pay, and when employers are liable for Superannuation Guarantee (SG) charge.
- The 7 calendar day period begins each time a payment with an ordinary times earnings component is paid. There is a focus on the importance of data quality to meet this timeframe.
- Treasury confirmed that the 7 calendar day timeframe for payment of super guarantee to avoid additional charges, will not include extensions for public holidays.
- Re-design of the SG charge.
- There will no longer be any late payment offset. Where there is a late contribution, it is automatically counted back to the first payday with an outstanding amount.
- Where surplus contributions have been made, they will be carried forward to the next possible payday.
- The payment of super contributions are deductible, regardless of if they are paid late or on time.
- The charge components will consider behaviours of employers, including efforts to disclose and rectify an error.
- Failure to pay a superannuation charge debt raised by the ATO will incur additional penalties.
- Broader eco-system changes that are happening to shape the future state.
Exposure drafts are expected to be released for consultation soon.
Member feedback
Members raised concerns in relation to several components of the announced policy:
- The 7 calendar day due date model not taking into account public holidays (particularly over Christmas or Easter where there are a number of public holidays in a row) and not allowing enough time for error correction.
- Confusion in relation to the scope of the statements in the Treasury Fact Sheet about the updates to choice rules/stapling. This included that there would be no data improvements for upfront information by employees, that is, no new ATO service to ensure employers could confirm correct details prior to payment or data transfer.
- Concerns that employers would not have visibility of ATO held data in order to self-correct or respond to notices from the ATO. It was clarified that data would be provided with notices, but that this would not be available in ATO online services.
Members also raised concerns in relation to the runway to implement the changes and have requested a forward plan from the ATO.
Attendees
|
Organisation |
Member or Attendee |
|---|---|
|
ATO |
Emma Rosenzweig (Chair), Superannuation and Employer Obligations |
|
ATO |
Adam O'Grady, Frontline Business Improvement |
|
ATO |
Amanda Keeble, Frontline Risk and Strategy |
|
ATO |
Justin Micale, Superannuation and Employer Obligations |
|
ATO |
Karen Blok, Enterprise Solutions and Technology |
|
ATO |
Naomi Westwood, Superannuation and Employer Obligations |
|
ATO |
Peta Lonergan, Superannuation and Employment Obligations |
|
Access Software |
Phillipa Durante |
|
Australian Bookkeepers Association |
Peter Thorp |
|
Australian Council of Trade Unions |
Casey Thompson |
|
Australia Payroll Association |
Jasmine Fernance |
|
Australian Restaurant and Cafe Association |
Wes Lambert |
|
Australian Retirement Trust |
Matt Dickson |
|
Automatic Data Processing Limited |
Graham Coutts |
|
Bluebird Accounting |
Julian Shimmin |
|
Brilliant Admin Solutions |
Kerrie Jarius |
|
Chartered Accountants Australia and New Zealand |
Tony Negline |
|
Digital Service Providers Australia New Zealand |
Maggie Leese |
|
Financial Services Council |
Kirsten Samuels |
|
Gateway Network Governance Body |
Michelle Bower |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
SuperChoice |
Nikki Murray |
|
Super Members Council |
Kate Brown |
|
The Association of Payroll Specialists |
Jason Low |
|
The Association of Superannuation Funds of Australia |
Hans Van Daatselaar |
|
The Tax Institute |
Robyn Jacobson |
|
Treasury |
Benjamin Murphy |
|
Xero |
Erin Adams |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Caryn Kaluzinski, Superannuation and Employer Obligations |
|
ATO |
Anne Vandenhurk, Policy, Analysis and Legislation |
|
KPMG |
Stephanie Renshaw |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO |
Michelle Allen, Superannuation and Employer Obligations |
|
ATO |
Sheridan Harvey, Policy, Analysis and Legislation |
|
Council of Small Business Organisations Australia |
Adele Sutton |
|
KPMG |
Andy Larmour |
|
Treasury |
Adam Hawkins |
|
Woolworths |
Coral Hargrave |