Superannuation funds need to be ready for proposed payday super reforms planned to take effect from July 2026. To support this change, the ATO is requiring super funds to be able receive real-time payments via the NPP. So, what does all this mean for super funds?
Superannuation in Australia is on the brink of its biggest transformation in decades. The Federal Government’s proposed payday super reforms will require employers to pay super contributions at the same time as salary and wages from July 2026.
This change is intended to improve retirement outcomes by getting money into members’ accounts faster and more efficiently, while also making payments more transparent. Indeed, the government estimates that around 8.9 million employees will benefit from receiving their contributions earlier and more frequently throughout their working life.1
But for super funds, these proposed reforms signal a fundamental shift that will bring new challenges and responsibilities. Processing windows – including the time to resolve errors – will shorten dramatically, while contribution volumes are expected to substantially increase.
Moreover, the ability to receive real-time payments will no longer be optional – it will be essential. The ATO has announced that super funds must be able to receive NPP payments from 1 July 2026.2
What's changing
Currently, most employers (around 60%) make superannuation contributions quarterly. Under payday super, contributions will need to be paid on the same day as salary or wages and must reach employees’ super funds within seven calendar days of payday – a major acceleration in the flow of contributions.
For super funds, the obligations are similarly exacting: contributions will need to be allocated or returned to employers within 3 business days, representing a dramatic reduction from the current 20-day timeframe.
Because transaction volumes are likely to almost triple as a result, this will require a rethink of how funds manage, track and reconcile payments.
Why real-time payments matter
Modern payment options are already available to support the transition to payday super. They allow employers to make real-time super contribution payments and can minimise delays and errors.
Central to this transformation is Australia’s real-time payments infrastructure, the NPP. Launched in 2018, the NPP connects over 120 banks, financial institutions and fintechs, facilitating around $6 billion of payments each day using Osko, PayID and PayTo.
For super funds, real-time payments mean:
- Super contributions can be made 24/7, including on weekends and public holidays
- Payments are more likely to go to the right place, through validation of payee and account details
- Improved error messaging under SuperStream, making it easier to resolve issues
- Instant updates on payment outcomes, making it faster and easier to track and reconcile payments
- No more bilateral agreements with individual employers under latest ATO guidance
- Clear oversight of payments at each step helps to ensure compliance
Preparing for change
The scale of the proposed reforms shouldn’t be underestimated. They will require significant upgrades to systems, data quality and operational processes. Yet they also present a real opportunity for funds to improve efficiency, reduce arrears and enhance the member experience.
Key steps to take now include:
- Talk to your financial institution – The essential first step in understanding how to receive and make super payments via the NPP
- Assess your capacity – Confirm your internal systems and processes can support higher volumes and more frequent payments
- Prioritise data accuracy – Accurate data is essential for reducing errors and enabling streamlined processing
- Engage employers and payment partners – Ensure you’re aligned on new payday super expectations and responsibilities
- Explore new tools – Consider how solutions like PayTo and Confirmation of Payee can drive efficiencies
Moving forward
The transition to payday super is one of the most significant operational shifts the industry has faced in years. While it introduces challenges, it also provides the chance to modernise processes and deliver better outcomes for members.
By acting early – upgrading your systems and processes, strengthening data and working closely with your partners – you can approach the change with confidence. The reforms are not only about compliance – they are about ensuring members benefit from a more timely, transparent superannuation system.
The question now is: are you ready for payday super?
Learn more
To learn more about real-time payments and payday super, visit our resources page or talk to your bank or payment service provider.
1 https://treasury.gov.au/sites/default/files/2024-09/p2024-581438-payday-super-factsheet.pdf
2 https://www.ato.gov.au/tax-and-super-professionals/for-superannuation-professionals/super-funds-newsroom/updated-guidance-on-superstream-standard-and-fvs
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