Colonial First State broadens offerings before Payday Super arrives

Ahead of “one of the biggest changes to the superannuation system in a decade”, Colonial First State is expanding its partnerships and services as businesses prepare their payroll and operations.

On 1 July, the Payday Super legislation will come into effect, requiring employers to pay their employees’ super at the same time as their salary and wages.

As reported by HR Leader’s sister brand, Accountants Daily, earlier this week, the Australian Taxation Office (ATO) urged businesses to “act early, so that you’re well placed ahead of 1 July”. ATO Deputy Commissioner Emma Rosenzweig said that more than half of employers are still not paying as the system dictates, leaving less time to address potential disruptions or mistakes.

“The change in frequency supports timely reporting to the ATO to make it easier for those who are doing the right thing and harder for those deliberately avoiding paying their employee entitlements,” she said.

HR Leader has previously reported on what businesses need to know ahead of the introduction of Payday Super.

However, recent research has shown that 80 per cent of Australian employees, and 58 per cent of Australian businesses, are unaware of the looming reforms.

As businesses prepare their payroll and operations for “one of the biggest changes to the superannuation system in a decade”, Colonial First State (CFS) has expanded its partnerships and services to make accessing its super solutions for employers easier and more streamlined.

Essential Super for businesses relaunch

CFS’ purpose-built solution to simplify superannuation management for Australian businesses, Essential Super, is set to be relaunched to Commonwealth Bank of Australia (CBA) business banking customers from 22 June.

Essential Super for business includes a clearing house payment facility, CFS noted in a statement, that allows employers to make contributions to multiple super funds through a single transaction, helping businesses manage super payments more efficiently as contribution frequency increases.

CBA executive general manager for small-business banking Rebecca Warren said the Payday Super changes will be significant for many small businesses, and preparation is key.

“Essential Super for business is built to help take the heavy lifting out of super payments for small businesses, making it easier to manage the changes with confidence,” she said.

Partnerships with MYOB, Employment Hero, and Reckon

Elsewhere, CFS’ dedicated default super solution for employers, FirstChoice Employer Super, has been integrated with payroll and HR platforms MYOB, Employment Hero, and Reckon, all of which help businesses reduce errors and the administrative burden of manual processing by automating super calculations, payments, and reporting within payroll.

As a result of the integration, CFS outlined, employers will be able to seamlessly select FirstChoice Employer Super as their default super fund, while employees can efficiently learn about and select FirstChoice during onboarding, helping reduce manual processes and minimise compliance risk, while supporting accurate and timely super payments in time for the Payday Super reforms.

CFS chief executive of superannuation and investments Kelly Power said: “Our investment in partnerships, technology, and investment capability reflects our long-term commitment to employers, by helping businesses offer super solutions that are built for simplicity and member outcomes.”

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Jerome Doraisamy

Jerome Doraisamy is the managing editor of Momentum Media’s professional services suite, encompassing Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times. He has worked as a journalist and podcast host at Momentum Media since February 2018. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.