ACCI has joined CCIWA’s calls for the Federal Government to delay the implementation of payday super set to come into effect on July 1 for small businesses with 25 employees or less.
ACCI is proposing the changes be delayed until at least January 1 next year if the Middle East conflict is resolved in the next three months.
Earlier this month as part of its Middle East crisis recommendations to help reduce business cost pressures, CCIWA said the Federal Government should “consider pausing the implementation of regulations which place an unnecessary cost on business to free up cashflow (eg. pausing the payday super guarantee)”. See previous article: New payday super rules: preparing your business for the July 1 shift.
The changes relate to how employers will need to calculate super and when it is paid. Non-compliance could make employers liable for the Superannuation Guarantee Charge (SGC).
“Our most recent business survey, conducted in February-March this year, shows only 50% of businesses are prepared for making the change,” McKellar said.
“While ACCI is not opposed to the concept of payday super, we believe the timing will put small business at a greater disadvantage and under further pressure.
“It will also add yet another layer of red tape on small businesses already buckling under endless paperwork.”
The ACCI survey showed 45% of businesses are concerned the changes will affect their cashflow.
“The changes will have a negative impact on the cashflow of small business and given the higher cost of fuel also impacting cashflow, the change will have the effect of a double whammy on small business,” McKellar said.
“We are asking that small businesses are given some breathing space as they navigate their way through the current fuel price shock.”
Business Law WA can advise you on how to meet your obligations under the new Super Payday regime or how the changes may impact your business. Contact [email protected] or call 08 9365 7560.
This article is authorised by Business Law WA, an incorporated legal practice and wholly owned subsidiary of CCIWA. The content of this article is general in nature and is not legal or professional advice and should not be relied upon as such.
