Payday Super: enabling real-time payments
The shift to real-time superannuation payments for Australian workers is fast approaching. Here’s how businesses and superannuation funds are getting ready for the transition.
Businesses and superannuation funds are being urged to prepare now as the clock ticks down to proposed new super rules that have been hailed as a financial “game-changer” for Australian workers, with an estimated AUD 4.2 trillion invested and hundreds of millions more added daily through contributions.
From 1 July 2026, the Australian Government plans to introduce Payday Super, which requires employers to pay superannuation contributions to employees on the same day as depositing their salaries, so that they are received by the superannuation account within seven calendar days.
The move represents a significant change from existing quarterly super contributions to enable faster and more transparent transactions. The new super payments cycle is designed to combat the scourge of unpaid superannuation, with the Australian Taxation Office (ATO) estimating that AUD 5.2 billion worth of super went unpaid in 2021-22.
Mary Delahunty, CEO of the Association of Superannuation Funds of Australia (ASFA), says the reforms will provide greater financial security for Australians.
“Payday Super will be a game-changer for all working Australians,” she says. “The benefits for working Australians when they reach retirement are noticeable – with a median-earning 25-year-old on track to be AUD 6000 better off in retirement from having their super paid fortnightly instead of quarterly.”
The changes will also encourage people to engage more regularly with their super, Delahunty says. “This is money Australian workers have earned and which they should expect to be paid to fund a comfortable retirement,” she says.
“Receiving super contributions at the same time as wages will mean people can see these contributions in real time, making it easier for them to pick up on any missed payments. It also means the compounding effect of super can apply even sooner.”
Westpac leading the way
Grant Doherty is Managing Director of Qvalent, Westpac’s own digital solutions business that helps organisations streamline financial business processes. He agrees that Payday Super is a win for individuals. “It’s about getting the best outcome for super members, like you and me,” Doherty says.
Nevertheless, he calls on employers and super funds to be proactive and embed new systems under Payday Super and prepare for the responsibilities of more frequent payments and the cash flow issues that more regular super payments may impose.
Qvalent is behind Westpac’s QuickSuper clearing house solution, which processes superannuation contributions for over four million Australians. As the only bank in Australia that owns and operates a superannuation clearing house in the Superannuation Transaction Network, Westpac is uniquely positioned to assist businesses in the transition to real-time payments. The network allows all industry participants to send and receive Superannuation messages electronically.
“We deeply understand the industry, as well as the advantages that real-time payment technology can offer,” Doherty says. “We feel a strong responsibility to provide thought leadership on how to improve outcomes across all participants using real-time payments.”
With the planned Payday Super reforms just one year away, Westpac conducted a pilot program with its partner superfunds to trial real-time payments, with over 100 default fund employers from Mercer Super, Hostplus, Cbus, HESTA, Care Super, Catholic Super, NGS Super, and Team Super. Real-time super payments will be available to all QuickSuper employers in September.
The program, which began in April 2025, saw the first ever real-time payment into QuickSuper via construction superannuation giant Cbus's QuickSuper Clearing House. Previously, such payments have typically been made via standard electronic funds transfer, direct debit, or BPAY.
The trial payment into QuickSuper came from an employer in Western Australia. Given the time difference between WA and Australia’s eastern states, the business would usually miss the cut-off for same-day processing in the Bulk Electronic Clearing System (BECS).
The BECS platform has been used to process bulk transactions in Australia and New Zealand since 1987 but is slated for decommissioning by 2030. Using the BECS system, it would also take two days for their employees to receive their super contributions.
“Instead, thanks to real-time payments, the clearing house received the payment in real-time and was able to provide immediate feedback to the employer that the payment had been received,” Doherty says. “Even better, the member contributions were received and invested by the super funds a full business day earlier than would otherwise occur, so this is a great news story for all participants.”
Later this year, the bank will also add the digital payment solution PayTo as a payment option in QuickSuper. Whereas the current pilot program involves ‘push’ payments from an employer, PayTo will allow QuickSuper to ‘pull’ payments from the employer based on secure, pre-approved arrangements.
What about super funds?
Superannuation funds will play a key role in the smooth transition to Payday Super, with their systems having to process more frequent and potentially higher volumes of contributions without errors or delays. They should be working closely with employers, payroll providers and clearing houses to smooth the process and resolve any sequencing issues that could disrupt contributions.
Delahunty is confident super funds will be up to the challenge. “Payday Super is a big change, but it’s manageable. This was announced in early 2023 and there has been steady progress to ensure that the sector is ready.”
She says super funds and other key stakeholders will engage closely with the ATO in the lead-up to the legislation coming into effect and work through any implementation concerns.
The super funds will also benefit from real-time payments, according to Doherty, given that Payday Super is well-aligned with their key mission to act in the best financial interests of members.
“There is no more obvious benefit to members than ensuring that their super is paid and invested sooner,” he says. “However, the higher volumes and reduced windows for processing will certainly impact funds. Fortunately, real-time payments can help with this.”
Westpac is also offering superannuation funds an optional real-time reconciliation service between QuickSuper and a Westpac NPP-enabled account to make the transition even easier.
“As the gateway and banking provider, we will have full visibility of data and payments coming in and can therefore perform the reconciliation process on behalf of the fund,” says Doherty, adding that this approach will provide all the benefits of real-time payments but reduce the integration effort for funds.
“By processing contributions as soon as the payment is received, funds can more easily comply with the tighter timeframes expected under Payday Super as well as deliver an enhanced experience for members and employers.”
A fairer system
The Federal Treasury expects the Payday Super reforms to deter superannuation theft and let the ATO take quick action to rectify instances of unpaid super.
To help ensure the successful implementation of the rules, Delahunty urges the ATO to work closely with businesses to confirm they have all the information and tools needed for an orderly and effective rollout.
“We also encourage the ATO to help businesses with the change by taking an educative rather than a strict enforcement or compliance approach in the initial stages.”
ASFA is recommending the creation of a steering council to provide strategic and technical advice to the government and the ATO to ensure a smooth rollout.
Delahunty concludes that Payday Super is “about fairness” and represents a positive change that will benefit all Australians”.
“If you are receiving wages in Australia, you will be better off from this change.”
What are the next steps for businesses?
- Speak to your Westpac Transactional Relationship Manager to see how QuickSuper can help you.
- Review payroll systems: Some systems may need upgrades or reconfiguration to automate the new and more frequent payment schedule.
- Reconsider cash-flow management: Businesses should update their cash-flow forecasts, identify potential shortfalls and arrange working capital if necessary.
- Educate staff: Payroll and finance teams should be trained on the new requirements to ensure accurate and timely payments.
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