Myth: ‘There’s nothing I need to do before the start date’
Fact: You need to be ready for 1 July.
Under Payday Super, employers need to pay super contributions each payday. To enable this, your fund must be set up and ready to receive contributions.
Make sure:
- you support the upgraded SuperStream Contributions standardExternal Link so contributions can be sent electronically using the correct data and payment formats
- your record keeping and data is accurate and up to date, including your fund and member details.
It's important fund and member details match, otherwise contributions may be rejected or delayed, creating compliance risks for employers and extra work for your fund.
Myth: ‘Payments are processed with the New Payments Platform (NPP) which means super funds will process contributions instantly’
Fact: You’ll need to allocate or reject payments within 3 business days.
Once a super contribution is received, you’ll have 3 business days to allocate or return the contribution. This involves important steps such as payment reconciliation, data validation and member account matching. Make sure you process the contribution as soon as possible so that employers can meet their super obligations.
Additionally, you’ll need to be able to receive super contributions via the NPP. It allows near real-time payments between participating financial institutions which may affect how some payments are processed.
Myth: ‘If a contribution is rejected, employers get extra time’
Fact: A rejected contribution doesn’t extend the due date for employers.
Employers will need to ensure their contributions reach their employee’s funds within 7 business days of payday.
You can help by promptly notifying employers of rejections, clearly explaining the reason, and supporting faster resolution through better data validation and guidance. Reducing errors is key, delays caused by contribution errors can quickly put employers at risk of not meeting their super obligations.
To reduce errors, if supported by their systems, employers must send a member verification request (MVR) to check whether your fund can accept a contribution. You must respond to an MVR within 24 hours.
Employers will need this confirmation before they can make a contribution or continue making contributions to your fund. If your fund isn’t set up correctly, employer contributions may be made in error and employers may be at risk of compliance action.
Make sure you have all the right information and are ready for 1 July.
For more information, visit Payday Super.
Stay up to date by visiting our Super funds newsroom and subscribingExternal Link to our monthly newsletter and CRT alerts.