Colonial First State has expanded its employer-focused superannuation offerings ahead of the introduction of Payday Super reforms, as new research suggests many small businesses remain unprepared for the changes.
From 1 July, employers will be required to pay superannuation on payday rather than quarterly, potentially increasing payment frequency by up to 13 times. Businesses will also need to transition away from the Australian Taxation Office’s Small Business Superannuation Clearing House, which closes on 30 June.
Research cited by CFS found 62 per cent of small business employers that do not currently pay super on payday expect the reforms to increase administrative effort, while 28 per cent were unaware the changes were coming.
As businesses prepare for what CFS described as one of the biggest changes to the superannuation system in a decade, the company has expanded its partnerships and services aimed at helping employers manage the new requirements.
The firm announced the relaunch of Essential Super for business to Commonwealth Bank of Australia business banking customers from 22 June.
Essential Super for business includes a clearing house payment facility that enables employers to make contributions to multiple super funds through a single transaction, helping businesses manage super payments more efficiently as contribution frequency increases.
“The Payday Super changes will be significant for many small businesses, and preparation is key,” said Rebecca Warren, executive general manager for small business banking at Commonwealth Bank of Australia.
“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.”
CFS has also integrated its FirstChoice Employer Super offering with payroll and HR platforms MYOB, Employment Hero and Reckon.
The integrations are designed to automate super calculations, payments and reporting within payroll systems, reducing manual processing and helping employers manage more frequent super contributions once the reforms take effect.
Under the arrangement, employers can select FirstChoice Employer Super as their default fund through the payroll platforms, while employees can review and choose the fund during onboarding.
Kelly Power, chief executive of superannuation and investments at CFS, said the investments reflected the company’s focus on supporting employers through the transition.
“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.”
CFS also highlighted the investment performance of its MySuper products as employers assess default super arrangements for staff.
According to SuperRatings, CFS was ranked first and second in its best-performing MySuper Lifecycle option for the 2025 calendar year.
Independent research firm Chant West also found CFS Lifestage options delivered the strongest overall MySuper performance when all age cohorts were aggregated across one, three and five years to 30 June 2025.
The company said most members invested in MySuper options offered through FirstChoice Employer Super and Essential Super received double-digit returns in the 2025 calendar year, with growth exceeding inflation by more than 6 per cent.
