Get ready for Payday Super
The countdown is on for Payday Super and it’s time for super funds and employers to upgrade processes and prepare for the real-time regime. Here’s what you need to know.
Australia’s Payday Super legislation, says Grant Doherty, will “deliver exactly what it says on the tin”.
The new laws have now been passed, and from 1 July 2026 employers will be required to make super guarantee contributions for their employees at the same time as they pay their salary, instead of quarterly. Employers must ensure that contributions are received by their employee’s nominated super fund within seven business days.
The Australian Tax Office (ATO) has released an updated electronic standard, SuperStream Contributions v3.0, for contribution data and payments.
According to the Australian Bureau of Statistics, just over 50 per cent of workers are paid fortnightly, which means that instead of making four superannuation guarantee contributions each year half of Australia’s employers will be making 26. Another 33 per cent of workers who are paid weekly will require even more frequent super payments.
The increased frequency is good news for employees, says Doherty, Managing Director at Westpac-owned digital solutions provider Qvalent. Analysis by the Super Members Council shows a 25-year-old worker on a median income may be more than 1.5 per cent – or AUD 8000 in today’s dollars – better off at retirement as a result of receiving super payments more regularly.
For employers, however, Payday Super may pose a challenge to their payments processes which, if unresolved, could see some fall into non-compliance with potentially steep penalties.
Super contributions reported by super funds will be matched to Single Touch Payroll data giving the Australian Tax Office greater visibility on super payments, enabling the agency to better identify underpayment and address late or missing contributions.
“It’s great for super fund members but shifts an administrative and financial burden onto employers,” says Doherty. “Some of that burden will be temporary, because when it becomes the norm it’s what should be happening anyway, but it’s certainly a change from where we are today.”
Tighter timelines for payments
Doherty recently led a masterclass on Payday Super held by the Association of Superannuation Funds of Australia (ASFA), and says his message to the super industry was that they should be doing whatever they can to make it easier for employers to comply, by speeding up the processes so that they don’t miss the seven-day window allowed for payments under the new legislation.
Within that seven-day period for employers, super funds also have a three-day window to accept the contributions or, if there are errors, to send them back.
Key to this timing is the movement of data and the potential of real-time payments systems. “It’s not just the speed and reliability of payments,” says Doherty. “Data needs to be transported so the super funds know who those payments are for, how much is the super guarantee and how much might be salary sacrifice.”
Right now, data can go much faster than the payments, which often go overnight in batches, he says, but that’s about to change.
Westpac is the only bank to operate a clearing house for superannuation payments, QuickSuper, which piloted real-time super payments from April 2025 and opened access to all employers in September 2025.
Several thousand employers have already opted for real-time payments through QuickSuper, and over AUD 250 million in contributions have already been processed.
With real-time payments from employers to QuickSuper now fully operational, Westpac is working with super funds on the next leg of the journey. Under the updated standard, super funds must be able to accept contribution payments through the New Payments Platform (NPP) from 1 July 2026.
An end-to-end real-time service enabling employer contributions to super funds with 24/7 payments, no cut-off times, no weekends and no overnight transfers will be fully operational and available to employers in QuickSuper well ahead of the July 2026 Payday Super deadline.
Doherty says it will be a key factor in enabling the new regime and helping employers to meet their obligations. “Payments and data will reach super funds in seconds and minutes rather than taking days to get there.”
Eliminating errors
Along with real-time payments, Westpac is also working to reduce errors in the super system when payments go astray, before rebounding back to the employer and being re-sent in a protracted process.
This has been an issue under the quarterly payments regime but will be greatly exacerbated when payments are more regular. “We have a gateway connection with super funds that allows us to verify details, such as when someone starts employment or changes their super to a new fund,” says Doherty.
“We can send a Member Verification Request message under Payday Super that will allow the super fund to check all the member details and respond, confirming if the intended payee is a member or not. This can drastically reduce the number of errors upfront and eliminate a major pain point for employers.”
Under the existing quarterly contribution system around 200 million superannuation payments are made by Australian employers each year, and Doherty says that perhaps 0.5 per cent of those have errors and are sent back to employers for correction. Reduction in errors is a primary goal, but faster payments will greatly assist employers in achieving compliance if errors do occur.
“Say it is a small business, and they do their payroll at night, because we see that 20 per cent of super payments are made after business hours or on the weekend,” says Doherty.
“That business will have already missed the cut-off for that day, a payment made in the traditional way won’t start moving until the next day – which is technically day one – so by the time a return comes back to them they are dangerously near their seven-day deadline and may have no chance of compliance.
“This can play havoc with small business cash flow because they might have to send off a new payment, while waiting for the original error payment to come back to them.”
Super funds also have a three-day window in which to allocate or return contributions, creating another risk. “So, there is also the possibility that delays by super funds can cause employers to miss their obligations,” says Doherty.
“Our message is that this is an opportunity for the super industry to review processes and move to the New Payments Platform so that payments can be processed as soon as they are received, effectively on Day Zero rather than 1, 2 or 3.”
Discovering the real-time advantage
With just over six months to go before Payday Super becomes mandatory, Doherty says the task ahead is to engage with employers and the super industry on the advantages of real-time payments and assist them in the transition.
Westpac already have the systems in place to ensure that employees receive their super contributions every payday, and that employers and funds can comply – painlessly – with the new regime.
“Our view is that Payday Super is a legislative requirement with a compliance stick attached, but this is also a fantastic opportunity for super funds to enhance member outcomes and improve employer experiences through better, faster and safer real-time payments,” says Doherty.
“Beyond Payday Super, super funds may also consider this within a wider context. That is, every single member payment interaction, including after-tax member contributions or retirement withdrawals, can be implemented using real-time payments. Westpac is the only provider that can offer all this in one place.”
Stay informed with Westpac IQ
Get the latest reports straight to your inbox.
Related articles
Browse topics
Disclaimer
©2025 Westpac Banking Corporation ABN 33 007 457 141 (including where acting under any of its Westpac, St George, Bank of Melbourne or BankSA brands, collectively, “Westpac”). References to the “Westpac Group” are to Westpac and its subsidiaries and includes the directors, employees and representatives of Westpac and its subsidiaries.
Things you should know
We respect your privacy: You can view the New Zealand Privacy Policy here, or the Australian Group Privacy Statement here. Each time someone visits our site, data is captured so that we can accurately evaluate the quality of our content and make improvements for you. We may at times use technology to capture data about you to help us to better understand you and your needs, including potentially for the purposes of assessing your individual reading habits and interests to allow us to provide suggestions regarding other reading material which may be suitable for you.
This information, unless specifically indicated otherwise, is under copyright of the Westpac Group. None of the material, nor its contents, nor any copy of it, may be altered in any way, transmitted to, copied of distributed to any other party without the prior written permission of the Westpac Group.
Disclaimer
This information has been prepared by Westpac and is intended for information purposes only. It is not intended to reflect any recommendation or financial advice and investment decisions should not be based on it. This information does not constitute an offer, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter into a legally binding contract. To the extent that this information contains any general advice, it has been prepared without taking into account your objectives, financial situation or needs and before acting on it you should consider the appropriateness of the advice. Certain types of transactions, including those involving futures, options and high yield securities give rise to substantial risk and are not suitable for all investors. We recommend that you seek your own independent legal or financial advice before proceeding with any investment decision.
This information may contain material provided by third parties. While such material is published with the necessary permission none of Westpac or its related entities accepts any responsibility for the accuracy or completeness of any such material. Although we have made every effort to ensure this information is free from error, none of Westpac or its related entities warrants the accuracy, adequacy or completeness of this information, or otherwise endorses it in any way. Except where contrary to law, Westpac Group intend by this notice to exclude liability for this information. This information is subject to change without notice and none of Westpac or its related entities is under any obligation to update this information or correct any inaccuracy which may become apparent at a later date. This information may contain or incorporate by reference forward-looking statements. The words “believe”, “anticipate”, “expect”, “intend”, “plan”, “predict”, “continue”, “assume”, “positioned”, “may”, “will”, “should”, “shall”, “risk” and other similar expressions that are predictions of or indicate future events and future trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts. Past performance is not a reliable indicator of future performance, nor are forecasts of future performance. Whilst every effort has been taken to ensure that the assumptions on which any forecasts are based are reasonable, the forecasts may be affected by incorrect assumptions or by known or unknown risks and uncertainties. The ultimate outcomes may differ substantially from any forecasts.
Conflicts of Interest: In the normal course of offering banking products and services to its clients, the Westpac Group may act in several capacities (including issuer, market maker, underwriter, distributor, swap counterparty and calculation agent) simultaneously with respect to a financial instrument, giving rise to potential conflicts of interest which may impact the performance of a financial instrument. The Westpac Group may at any time transact or hold a position (including hedging and trading positions) for its own account or the account of a client in any financial instrument which may impact the performance of that financial instrument.
Author(s) disclaimer and declaration: The author(s) confirms that (a) no part of his/her compensation was, is, or will be, directly or indirectly, related to any views or (if applicable) recommendations expressed in this material; (b) this material accurately reflects his/her personal views about the financial products, companies or issuers (if applicable) and is based on sources reasonably believed to be reliable and accurate; (c) to the best of the author’s knowledge, they are not in receipt of inside information and this material does not contain inside information; and (d) no other part of the Westpac Group has made any attempt to influence this material.
Further important information regarding sustainability-related content: This material may contain statements relating to environmental, social and governance (ESG) topics. These are subject to known and unknown risks, and there are significant uncertainties, limitations, risks and assumptions in the metrics, modelling, data, scenarios, reporting and analysis on which the statements rely. In particular, these areas are rapidly evolving and maturing, and there are variations in approaches and common standards and practice, as well as uncertainty around future related policy and legislation. Some material may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. There is a risk that the analysis, estimates, judgements, assumptions, views, models, scenarios or projections used may turn out to be incorrect. These risks may cause actual outcomes to differ materially from those expressed or implied. The ESG-related statements in this material do not constitute advice, nor are they guarantees or predictions of future performance, and Westpac gives no representation, warranty or assurance (including as to the quality, accuracy or completeness of the statements). You should seek your own independent advice.
Additional country disclosures:
Australia: Westpac holds an Australian Financial Services Licence (No. 233714). You can access Westpac’s Financial Services Guide here or request a copy from your Westpac point of contact. To the extent that this information contains any general advice, it has been prepared without taking into account your objectives, financial situation or needs and before acting on it you should consider the appropriateness of the advice.
New Zealand: In New Zealand, Westpac Institutional Bank refers to the brand under which products and services are provided by either Westpac (NZ division) or Westpac New Zealand Limited (company number 1763882), the New Zealand incorporated subsidiary of Westpac ("WNZL"). Any product or service made available by WNZL does not represent an offer from Westpac or any of its subsidiaries (other than WNZL). Neither Westpac nor its other subsidiaries guarantee or otherwise support the performance of WNZL in respect of any such product. WNZL is not an authorised deposit-taking institution for the purposes of Australian prudential standards. The current disclosure statements for the New Zealand branch of Westpac and WNZL can be obtained at the internet address www.westpac.co.nz.
Singapore: This material has been prepared and issued for distribution in Singapore to institutional investors, accredited investors and expert investors (as defined in the applicable Singapore laws and regulations) only. Recipients of this material in Singapore should contact Westpac Singapore Branch in respect of any matters arising from, or in connection with, this material. Westpac Singapore Branch holds a wholesale banking licence and is subject to supervision by the Monetary Authority of Singapore.
Fiji: Unless otherwise specified, the products and services for Westpac Fiji are available from www.westpac.com.fj © Westpac Banking Corporation ABN 33 007 457 141. This information does not take your personal circumstances into account and before acting on it you should consider the appropriateness of the information for your financial situation. Westpac Banking Corporation ABN 33 007 457 141 is incorporated in NSW Australia and registered as a branch in Fiji. The liability of its members is limited.
Papua New Guinea: Unless otherwise specified, the products and services for Westpac PNG are available from www.westpac.com.pg © Westpac Banking Corporation ABN 33 007 457 141. This information does not take your personal circumstances into account and before acting on it you should consider the appropriateness of the information for your financial situation. Westpac Banking Corporation ABN 33 007 457 141 is incorporated in NSW Australia. Westpac is represented in Papua New Guinea by Westpac Bank - PNG - Limited. The liability of its members is limited.
U.S.: Westpac operates in the United States of America as a federally licensed branch, regulated by the Office of the Comptroller of the Currency. Westpac is also registered with the US Commodity Futures Trading Commission (“CFTC”) as a Swap Dealer, but is neither registered as, or affiliated with, a Futures Commission Merchant registered with the US CFTC. The services and products referenced above are not insured by the Federal Deposit Insurance Corporation (“FDIC”). Westpac Capital Markets, LLC (‘WCM’), a wholly-owned subsidiary of Westpac, is a broker-dealer registered under the U.S. Securities Exchange Act of 1934 (‘the Exchange Act’) and member of the Financial Industry Regulatory Authority (‘FINRA’). In accordance with APRA's Prudential Standard 222 'Association with Related Entities', Westpac does not stand behind WCM other than as provided for in certain legal agreements between Westpac and WCM and obligations of WCM do not represent liabilities of Westpac.
This communication is provided for distribution to U.S. institutional investors in reliance on the exemption from registration provided by Rule 15a-6 under the Exchange Act and is not subject to all of the independence and disclosure standards applicable to debt research reports prepared for retail investors in the United States. WCM is the U.S. distributor of this communication and accepts responsibility for the contents of this communication. Transactions by U.S. customers of any securities referenced herein should be effected through WCM. All disclaimers set out with respect to Westpac apply equally to WCM. If you would like to speak to someone regarding any security mentioned herein, please contact WCM on +1 212 389 1269. Investing in any non-U.S. securities or related financial instruments mentioned in this communication may present certain risks. The securities of non-U.S. issuers may not be registered with, or be subject to the regulations of, the SEC in the United States. Information on such non-U.S. securities or related financial instruments may be limited. Non-U.S. companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in effect in the United States. The value of any investment or income from any securities or related derivative instruments denominated in a currency other than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income from such securities or related derivative instruments.
The author of this communication is employed by Westpac and is not registered or qualified as a research analyst, representative, or associated person of WCM or any other U.S. broker-dealer under the rules of FINRA, any other U.S. self-regulatory organisation, or the laws, rules or regulations of any State. Unless otherwise specifically stated, the views expressed herein are solely those of the author and may differ from the information, views or analysis expressed by Westpac and/or its affiliates.
UK: The London branch of Westpac is authorised in the United Kingdom by the Prudential Regulation Authority (PRA) and is subject to regulation by the Financial Conduct Authority (FCA) and limited regulation by the PRA (Financial Services Register number: 124586). The London branch of Westpac is registered at Companies House as a branch established in the United Kingdom (Branch No. BR000106). Details about the extent of the regulation of Westpac’s London branch by the PRA are available from us on request.
This communication is not being made to or distributed to, and must not be passed on to, the general public in the United Kingdom. Rather, this communication is being made only to and is directed at (a) those persons falling within the definition of Investment Professionals (set out in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”)); (b) those persons falling within the definition of high net worth companies, unincorporated associations etc. (set out in Article 49(2)of the Order; (c) other persons to whom it may lawfully be communicated in accordance with the Order or (d) any persons to whom it may otherwise lawfully be made (all such persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this communication or any of its contents. In the same way, the information contained in this communication is intended for “eligible counterparties” and “professional clients” as defined by the rules of the Financial Conduct Authority and is not intended for “retail clients”. Westpac expressly prohibits you from passing on the information in this communication to any third party.
European Economic Area (“EEA”): This material may be distributed to you by either: (i) Westpac directly, or (ii) Westpac Europe GmbH (“WEG”) under a sub-licensing arrangement. WEG has not edited or otherwise modified the content of this material. WEG is authorised in Germany by the Federal Financial Supervision Authority (‘BaFin’) and subject to its regulation. WEG’s supervisory authorities are BaFin and the German Federal Bank (‘Deutsche Bundesbank’). WEG is registered with the commercial register (‘Handelsregister’) of the local court of Frankfurt am Main under registration number HRB 118483. In accordance with APRA’s Prudential Standard 222 ‘Association with Related Entities’, Westpac does not stand behind WEG other than as provided for in certain legal agreements (a risk transfer, sub-participation and collateral agreement) between Westpac and WEG and obligations of WEG do not represent liabilities of Westpac. Any product or service made available by WEG does not represent an offer from Westpac or any of its subsidiaries (other than WEG). All disclaimers set out with respect to Westpac apply equally to WEG.
This communication is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.
This communication contains general commentary, research, and market colour. The communication does not constitute investment advice. The material may contain an ‘investment recommendation’ and/or ‘information recommending or suggesting an investment’, both as defined in Regulation (EU) No 596/2014 (including as applicable in the United Kingdom) (“MAR”). In accordance with the relevant provisions of MAR, reasonable care has been taken to ensure that the material has been objectively presented and that interests or conflicts of interest of the sender concerning the financial instruments to which that information relates have been disclosed.
Investment recommendations must be read alongside the specific disclosure which accompanies them and the general disclosure which can be found here. Such disclosure fulfils certain additional information requirements of MAR and associated delegated legislation and by accepting this communication you acknowledge that you are aware of the existence of such additional disclosure and its contents.
To the extent this communication comprises an investment recommendation it is classified as non-independent research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and therefore constitutes a marketing communication. Further, this communication is not subject to any prohibition on dealing ahead of the dissemination of investment research.