Under Payday Super, you must now allocate or return super contributions within 3 business days. This timeframe does not include the day the contribution is received.
For example, if a super contribution is received on a Monday, the fund has until Thursday to allocate or return it.
Please note there has been no change for self-managed super funds. They still have 28 calendar days after the end of the month in which the contribution is received to allocate or return it.
Understanding business days
For this purpose, a business day is any day that's not a:
- Saturday
- Sunday
- public holiday in the fund's location.
Please be aware the timeframe for employers to pay contributions uses a different definition of business day.
Allocating or rejecting contributions
If you accept a contribution and allocate it to the intended employee’s account, you must report that contribution to the ATO using the Member Account Transaction Service (MATS).
If you reject a contribution, you must send a contribution transaction error response (CTER) message to explain why it was rejected. These messages were standardised and simplified as part of the updated Contribution standard v3.0External Link.
For more information, see Payday Super and SuperStream for super funds.
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