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'Payday super' increases cash flow risks for agencies

The Government's plan for employees to be paid super at the same time as their wages will create cash flow risks for staffing providers that require action well in advance of the implementation date, an industry specialist and former agency MD says.

Earlier this month, the Federal Government announced it was introducing 'payday super', which will require employers to pay their employees' super contributions at the same time as their salary and wages.

"The change will particularly benefit [employees] in lower-paid, casual and insecure work who are more likely to miss out when super is paid less frequently," Treasurer Jim Chalmers said at the time. For example, a 25-year-old median income worker currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5% better off when they retire...