A cashflow crisis is looming for small businesses unaware of payday superannuation reforms, according to multiple industry reports showing few SME employers are fully aware of the July 1 transition.
Under the payday superannuation system, employers will need to pay their workers’ superannuation guarantee at the same time they process salary or wages.
The system will replace the current arrangement where employers can pay their workers’ super guarantee as infrequently as four times a year.
The transition away from quarterly payments could drastically affect small business cashflow, and the Australian Taxation Office (ATO) is urging employers to prepare for the change before it takes place.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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