Payday Super: How long do super funds have to allocate?

Once a super fund receives an SG contribution, how long do they have to allocate it to the member's account?

3 business days, down from 20.

This change is on the fund's side, not the employer's, but it matters for how the whole system works. Under the current rules, funds have up to 20 business days to allocate a contribution to a member's account or return it to the employer if it can't be allocated. Under payday super, that window shrinks to 3 business days.

The practical implication for employers: if a contribution can't be allocated, because of an incorrect member number, a closed account, or a fund that can't accept the contribution,  you'll know much faster. That's useful, but it also means you need to be ready to act on rejections quickly. A returned contribution still needs to reach the fund within the original 7-business-day window.

This is one of the reasons having a clearing house that handles returns and resubmissions efficiently is important under payday super. Delays in the return loop can put you at risk of missing the deadline.

Beam handles contribution rejections and resubmissions automatically, reducing the risk of a returned contribution becoming a compliance issue.

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Read the full blog on Payday Super Questions Answered

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_{The Q&As is provided by Microkeeper. The information about Beam in the Q&As is provided by Precision Administration Services Pty Ltd (ABN 47 098 977 667, AFSL 246 604) (Precision), issuer of Beam. Microkeeper does not provide advice or a recommendation in relation to Beam or any other clearing house product. The opinions and comments shared by people in this article are theirs alone, and they’re not necessarily shared by Precision.} 

_{Precision is wholly owned by Australian Retirement Trust Pty Ltd (ABN 88 010 720 840, AFSL 228 975), trustee of Australian Retirement Trust (ABN 60 905 115 063). The information about Beam is general information only. It’s not based on the specific objectives, financial situation or needs of your business. So think about those things and read the Product Disclosure Statement (PDS) before you make any decision about Beam products. For a copy of the Beam Clearing House PDS, contact Microkeeper or visit their website.}