With Payday Super now in full swing, I know many of you are focused on making sure your contributions land on time. It's a new rhythm to get used to, and the seven-business-day window after payday can feel tight. I wanted to share a few practical tips to help you stay compliant and avoid any headaches.

As you know, Payday Super means contributions need to hit an employee’s super fund within seven business days of payday. To help you stay on track, here are a few key things I've seen the ATO highlight for employers:

First, make sure you're using the new member verification request ('MVR') to verify that an employee’s super fund details are valid and that the fund can accept a contribution before it is made;

Second, check with your payroll provider or clearing house that the fund is actually responding to MVRs;

Third, keep a close eye on payments, as funds have three business days to allocate or reject a payment; and

Finally, if a payment is rejected or returned, act quickly to correct any errors and resubmit to the correct fund.

For new employees, or where an employee changes their fund, employers generally have 20 business days to make the initial contribution. The good news is, the ATO has indicated they'll be taking a supportive approach in this first year, focusing on education rather than penalties for those genuinely trying to comply. So, while it's important to get this right, don't panic if you're still finding your feet.

Getting these processes right now will save you a lot of stress down the line. If you have any questions or need a hand reviewing your current setup, please don't hesitate to reach out. We're here to help you navigate these changes smoothly.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.