Payday Super
A discussion on Payday super highlighted that implementation to date has been successful, with many contributions and transactions processing as intended. Early implementation problems were concentrated in a relatively small number of exceptions rather than indicating systemic problems across the ecosystem.
Data quality
A key theme for both the ATO and Industry is the critical importance of data quality. The transition to Payday Super has introduced new payroll and clearing house participants into the SuperStream ecosystem, exposing data issues that were previously less visible. Main issues identified included:
- incorrect dates of birth
- missing matching information
- unexpected payroll identifiers
- inconsistent use of optional data fields.
These have all affected contribution matching and processing. However, it is very pleasing to see that industry participants have worked collaboratively to improve outcomes, with matching rates and processing success improving significantly over the first 8 weeks of operation.
Transaction volumes
Despite concerns that more frequent contribution payments could overwhelm systems, early evidence suggests the ecosystem is coping well. Some providers have experienced volumes equivalent to a month's contributions arriving in a single day, yet core processing systems remained stable. This provides confidence that the infrastructure supporting Payday Super is capable of operating at significantly higher transaction frequencies.
New payments platform
While uptake has been slower than initially anticipated, some clearing houses are already leveraging the new payments platform (NPP) to deliver contributions into fund accounts within minutes of payroll being processed. There are still ongoing issues where contribution data and payment information do not travel together through the processing chain.
This creates reconciliation challenges for funds and can result in contribution payments being returned to source. This is a significant focus area for future improvement, with the ATO engaging Australian Payments Plus and banking stakeholders to improve return-to-source processes and reduce delays experienced by employers and funds.
Expanding and improving NPP adoption
The NPP has demonstrated that contributions can reach funds within minutes. However, adoption is expected to expand as more clearing houses start supporting NPP and greater employer awareness of payment options.
Hypercare
Hypercare arrangements were established following go live, with the collaborative efforts between the ATO, Gateway Network Governance Body (GNGB), funds, gateways and service providers. The hypercare process enabled rapid identification and resolution of issues, facilitated information sharing across participants and created practical workarounds where necessary. Industry participants should continue to engage with these support mechanisms.
Governance of new service providers
GNGB noted issues regarding the growing number of new payroll and service providers entering the SuperStream environment. Focus areas under active consideration are:
- ongoing governance arrangements for new participants
- health checks and monitoring
- stronger onboarding expectations
- frameworks for issue management once hypercare concludes.
Successor fund transfers
Successor fund transfers (SFT) is a major area requiring further attention under the Payday Super framework. Existing SFT processes were already complex, but more frequent contribution obligations increase the operational challenges for employers, trustees and administrators during fund transfer events. Practical and pragmatic solutions will require coordinated work across industry, the Australian Prudential Regulation Authority and the ATO, with current protocols needing review in light of Payday Super requirements.
Ongoing SuperStream standard improvements
There are no current plans for major new versions of the standard in the near term. However, we are maintaining a list of future enhancement opportunities, identifying operational pain points, and assessing whether improvements can be delivered through guidance rather than expensive system changes. The clear message is that any future changes would need to demonstrate a strong cost-benefit case.
In summary, implementation continues with future priorities including:
- monitoring contribution patterns as more employers move to Payday Super
- strengthening governance arrangements for new service providers
- faster return-to-source processes
- improving data standards and reconciliation processes
- identifying business-as-usual enhancements that can deliver benefits without imposing major system redevelopment costs on the industry.
Better Targeted Super Concessions
Division 296 and the supporting regulations have now been formally registered. Industry consultation has consequently moved beyond policy development and into detailed administrative design. The ATO's Division 296 working group has also increased its meeting frequency. Members were reminded that working group feedback is directly influencing design decisions and remains the primary mechanism for testing implementation approaches and identifying practical industry concerns.
Request for information process
The ATO has changed the response time for fund's that are calculating there in scope members relevant super earnings under section 296-70 of the Income Tax Assessment Act 1997 which are defined benefit funds not in retirement phase and other super interests as prescribed by the regulations. Previously these funds would get their Division 296 request for information (RFI) from November 2027 for the 2026–27 income year and would have 10 days to respond. This has changed to 28 days. The framework has been deliberately built with flexibility, allowing response periods to be adjusted and extensions to be considered, particularly during the first year of operation when funds and administrators are expected to be adapting to entirely new processes.
We are still designing how reporting of Division 296 information for funds going through an SFT will work. There is a period of time before the RFI system changes are deployed in November 2027 and we will have an interim process during this time.
Hybrid type super interests
The ATO has clarified that funds will need to determine whether separate interests exist and report them separately. The ATO indicated that Division 296 RFIs will be issued for each super interest the member has in the fund and therefore reporting frameworks must clearly identify the type of superannuation interest involved.
Family law split interests
Legislation now requires reporting of total super balance values for both the member spouse and the non-member spouse. This represents a new reporting obligation and for some funds it will mean that they will need to collect information about the non-member spouse that they don’t currently have so that they can report the non-member spouse’s total super balance value to the ATO.
Guidance and industry support
A substantial public advice and guidance program is underway, with planned products including:
- Taxation Ruling on Total superannuation balance which will replace Law Companion Ruling LCR 2016/12 Superannuation reform: total superannuation balance
- Law Companion Ruling on total superannuation balance value
- Law Companion Ruling on relevant superannuation earnings for prescribed interests
- Law Companion Ruling on relevant superannuation earnings for interests that are not prescribed interests.
Implementation timetable
Draft electronic reporting specifications for Division 296 RFIs are expected to be released for consultation in September 2026. The first RFI batch is expected to commence in November 2027 and will primarily target defined benefit interests not in retirement phase and other prescribed interests. A second phase commencing from April 2028 will cover interests that require relevant super earnings to be calculated on a fair and reasonable basis.
These staggered timeframes are intended to align with the availability of the information funds need to calculate their in-scope members relevant super earnings. RFIs are unlikely to be a simple annual event and will be generated as members are identified as Division 296 candidates through total super balance calculations.
Division 296 tax assessments
These assessments are expected to begin issuing from March 2028, which will be later than future years due to the initial system deployment timetable. Members will have 60 days from their Division 296 tax notice of assessment to elect to release superannuation to pay their liability, and funds should expect release authorities to begin flowing shortly thereafter. If liabilities remain unpaid after the legislated period, the ATO may issue default release authorities.
Division 296 tax release authorities
The ATO will develop a solution that will use a reference number when sending the release authority to the fund which will identify the release authority as a Division 296 release authority and when funds respond they will repeat the reference number back to the ATO.
Division 296 tax deferred debt process
The ATO has not yet codesigned with the working group the deferred debt process. At present we can confirm the Division 296 deferred debt account creation letter that is sent to funds will be sent digitally via Online services for business. The end benefit notice reporting by funds will be digital for Division 296 via Online services for business and we are improving the Division 293 process by making this digital as well.
The debt account discharge liability release authority statement for Division 296 will be sent digitally to the ATO by the fund, via Online services for business, improving the Division 293 process by making this digital for Division 293.
Survivors law bill update
The Surviving Victims’ Access to Offender Superannuation reforms project has moved into the design phase. Members who previously nominated to participate in the working group will shortly receive placeholder invitations and further engagement materials ahead of consultation activities.
The first industry consultation session is expected to be held in September 2026, providing stakeholders with an opportunity to contribute to the development of the framework and implementation approach. The project team also encouraged broader industry participation, noting that organisations or individuals who were unable to submit an expression of interest earlier are still welcome to join the working group.
Lost and unclaimed superannuation –working group – data quality
As at 30 June 2026, the ATO reported:
- a combined $21.2 billion in lost and ATO-held superannuation
- comprising 356,000 lost accounts valued at $14.7 billion
- almost 7.3 million ATO-held accounts valued at $6.6 billion
- including more than $6.4 billion in unclaimed superannuation money.
The value of both lost and ATO-held super has continued to rise, with lost super increasing by almost $2 billion over the previous year and nearly $2.9 billion over 2 years, highlighting the scale of disengaged member balances across the system.
Ongoing efforts to reconnect members with their superannuation, include proactive reunification activities, publication of lost and ATO-held super statistics, and member education campaigns. During the 2026 financial year, the ATO facilitated the return of more than $1.1 billion in unclaimed super through rollovers to active superannuation accounts or direct payments to eligible individuals.
We continue to promote our annual Super Health Check, encouraging members to:
- update contact details
- review balances and employer contributions
- search for lost and unclaimed super
- consider account consolidation
- review beneficiary nominations.
To reduce future growth in unclaimed super, we recently piloted a targeted campaign aimed at lost members aged 56 and over with higher account balances. This cohort is considered at increased risk of eventually becoming unclaimed super money (USM). The campaign sought to encourage members to re-engage with their super fund, maintain current contact details, and avoid the transfer of accounts to the ATO upon reaching the legislative USM thresholds.
The pilot highlighted that some members ignored communications from their super fund because they believed their super was already safe and required no further action, while others continued receiving fund correspondence but did not realise engagement was necessary to avoid lost or unclaimed status. Industry participants noted these insights could be valuable in shaping future member engagement and USM prevention campaigns.
Superannuation Industry Stewardship Group special purpose working group
Strong industry interest was received, with membership expected to be finalised and the first meeting scheduled for September 2026. The first formal task of the special purpose working group will be establishing its terms of reference. This will define the group's scope, priorities, governance arrangements and expected outcomes.
The group’s initial focus will be identifying a small number of high-impact issues where government and industry can work collaboratively to improve member outcomes. The first workstream will concentrate on unclaimed superannuation, insurance, remote communities, and First Nations members, with an expectation that both operational and policy issues will be explored.
Data quality
Funds are encouraged to review their processes to ensure:
- member data is accurate and complete
- USM categories are correctly applied
- outcome responses are actioned promptly
- Section 20C notices are responded to within required timeframes
- payment reference number management controls are effective
- correct application of USM category hierarchy
- members are encouraged to make a binding death benefit nomination, so their super benefits are paid according to their wishes and more easily passed on to their beneficiaries.
Super services fraud reporting
The presentation focused on fraud reporting related to SuperMatch and the importance of providing timely, accurate, and actionable intelligence when suspected misuse is identified. Funds are encouraged to enhance reporting by providing detailed information on suspected misuse, particularly suspicious mobile numbers and email addresses used during fraudulent interactions, as well as member identifying information.
The importance of reporting the member account number, consistent with member account attribute service reporting, was emphasised as a key identifier to support investigation and intelligence activities. Consistent, well-structured reporting with accessible attachments helps the ATO assess incidents quickly, identify fraud trends, issue SuperMatch alerts, and share intelligence across the superannuation sector.
Frontline operations update and super enquiry service trends
The update covered activity from 16 May to 21 August in comparison to 16 February to 15 May 2026. Overall, demand remained relatively stable. Fund-initiated requests increased modestly from 891 to 971 across the most recent 2 periods. The most notable change is the shift in where demand is occurring. In the previous period, departing Australia superannuation payment and self-managed superannuation fund verification service verification requests represented the largest source of contact. In this period, we have seen those categories reduce, while demand has increased across other areas.
ATO proactive engagement
Proactive engagement has risen from 125 to 249 over the 2 periods. This increase is largely driven by activity relating to USM, transfer balance account reporting, suspended payments and SuperStream failed validation messages.
System issues
The group was reminded that if there are any problems with release authorities or payments, to notify the ATO immediately by lodging a super enquiry service request.
Reconciliations
Funds are to proactively undertake reconciliation’s on ATO accounts and contact us for any questions regarding payment variation advice and payments.
Suspended payments and failed validations
Funds to send data messages and payments as per data and payment standards. When we contact the funds for more information regarding suspended payments, failed validations/reconciliations please respond within relevant time frames.