Payday Super to tackle gender super gap: Aware Super

Payday Super will help tackle the gender superannuation gap and significantly help women who have historically lost contributions via gaps created by quarterly payment cycles, according to Aware Super.

The $245 billion super fund is ushering in the new Payday Super regime, which kicks into gear on July 1, as "one of the most meaningful improvements to Australia's retirement savings system in a generation."

"Many of Aware Super's members are women working in health care, education and community services - often in part-time or casual roles. Payday Super addresses a structural inequity that has cost these workers real money over their working lives. That matters enormously to us," Aware Super chief executive Deanne Stewart said.

Aware Super had 1.26 million member accounts at the end of March. APRA statistics show that 63% of its members are females.

A recent survey from Rest found two-thirds of Australian businesses expect Payday Super will require moderate to significant operational changes, despite widespread confidence in their ability to comply with the reforms.

Some 66% of employers anticipate meaningful changes to payroll, superannuation and onboarding processes as they prepare for the shift to paying super contributions at the same time as wages.

The survey of more than 1100 employers found 54% expect to modify their existing payroll or superannuation systems, while 27% plan to invest in new technology. A further 16% intend to automate super payments through accounting software or a clearing house.

Cashflow emerged as the most significant challenge, with 44% of employers expecting increased operational costs and cashflow impacts once the changes take effect.

Stewart commented that Aware has worked closely with employers in the lead-up to July 1.

"We know that for many employers, especially those who are not large payroll operators, this is a significant change. We've been working closely with employer groups in the lead up to 1 July and we'll continue to support them as the new system beds in.

Our goal is to help make this transition as straightforward as possible."