The NPP allows near real-time payments between participating financial institutions 24 hours a day. Payments can carry more information than traditional transfers, making it easier to identify and reconcile transactions.
Under Payday Super, self-managed super funds (SMSFs) that receive super contributions from unrelated employers will need to be able to accept NPP payments.
Review your processes now
Banking arrangements
Confirm with your bank whether your SMSF account supports NPP payments. Some institutions apply conditions or limits that may affect how payments are processed. This may sound simple, however, it’s important to understand how incoming and outgoing payments will appear on bank statements and how they can be matched to your records.
Record-keeping
Payments through the NPP may include more transaction information, but you are still responsible for ensuring payments are correctly identified, allocated and recorded. Clear descriptions and consistent processes support accurate reporting and compliance.
Contribution allocation requirements
Your SMSF will still have up to 28 calendar days after the end of the month in which a contribution is received to allocate or return super contributions. This has not changed under Payday Super.
End-to-end processes
Your bank, administrator and gateway can help you understand how NPP payments fit within your funds existing processes and test payment flows.
Checking your readiness for platforms like the NPP now can help reduce processing issues over time.
See SuperStream changes for more information.
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