From 1 July 2026, employers are required to pay super guarantee contributions on “payday” under the new payday super rules. This means super contributions must generally reach an employee’s fund within seven business days of each payday.

A key practical issue under the new rules will be dealing with rejected contributions. If a super fund rejects a contribution through SuperStream, the clock does not simply stop. The employer must still resolve the issue and ensure the contribution is received by the fund on time, unless an extended timeframe applies.

This makes it important for employers to have a process in place to identify and fix rejected contributions quickly.

Most rejected contributions are expected to come down to data issues. The ATO and SuperStream commonly identify errors such as incorrect employee details, invalid unique superannuation identifiers, incorrect member numbers or tax file numbers, and frequent contribution errors. Where contributions are rejected by a fund, clearing house or digital service provider, the issue will need to be corrected before the contribution can be successfully resubmitted.

Employers using Xero should also note that Xero’s SuperStream service is currently only available through the SuperStream v3 upgrade.

If a contribution bounces back, employers should:

• Check the error message from the clearing house or digital service provider straight away
• Review and correct employee details, such as tax file numbers, member numbers and fund details
• Use a member verification request, where available, to confirm fund details before resubmitting
• Resubmit the contribution within the original seven business day window
• If the stapled fund rejects the contribution, follow the ATO’s order of choice-of-fund rules and pay to an eligible alternative fund

In some limited circumstances, an extended 20-business-day timeframe may apply. This can include situations where the employer is checking or verifying a new employee’s fund details or where there has been a change to the fund the employee contributes to.

If the seven business day window closes before the contribution is received by the fund, a super guarantee charge shortfall may arise. This can trigger daily compounding notional earnings, administrative uplift amounts and potential penalties. The good news is that where contributions are paid promptly, the rules include a mechanism to reduce the notional earnings component.

Employers should still pay the late contribution directly to the employee’s fund before the ATO issues an assessment, as this can reduce, although not eliminate, the super guarantee charge.

The ATO has indicated it will take a risk-based and facilitative approach during 2026–2027 for employers making genuine efforts to comply. Occasional genuine errors that are identified and corrected quickly are likely to be treated as lower risk than repeated, deliberate or careless non-compliance.

The main takeaway is simple: under payday super, rejected contributions need to be treated as urgent. A small data error can quickly become a compliance issue if it is not picked up and fixed in time.