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With immediate OSKO payments now implemented at the banking level, there is absolutely no reason for the Xero clearing house to hold and release funds on the 5th business day, unless they are hoping to profit from the venture by investing our cash.
With businesses holding the liability and responsibility, we will be turning off Xero Super and using a different clearing house in order to minimise the risk of being held liable for an overdue payment.
If Xero wants to keep our business, then Xero needs to ensure an SLA of immediate processing or a maximum of 24 hours. The cash belongs to the employee, not the clearing house.

Thanks for the response, David, but it confirms the problem. If Xero's clearing house holds funds until the 5th business day, that uses up most of the 7-business-day window employers have under Payday Super, before the money has even reached the fund.

That leaves just two business days to cover everything that can go wrong. A fund could be slow to allocate, a member's details could be wrong, or a contribution could be rejected and returned, and the employer then has to correct and resubmit. Any of these can push a payment past the deadline.

The key point is that the legal liability sits with the employer, not the clearing house. If a contribution lands late because it sat with the provider for five days, the employer bears the Super Guarantee Charge and penalties. We're being asked to carry the risk for a delay we can't control.

The whole intent of Payday Super is that super moves with wages. Holding employee money for most of a week runs against that, and it's hard to see what value the delay adds for employers or employees.

What we're asking for:

Funds passed on to the super fund the business day after they are received, or
If the current provider can't do that, a move to a clearing house that can.

Hi all,

I post payroll, 30seconds later I authorise Super House to debit employee Super Guarantee + salary sacrifice, then 21-28 days later superannuation lands in Hostplus. This is all post 1 July 2026.

Is it Xero, Super Choice or Hostplus not adhering to new regulations? Now I'm liable, this is appalling.

The solution for me was to change to a different Payday Super provider. My super is with AustralianSuper - they provide a clearing house through somebody called Wrkr. I processed my payroll in Xero and sent my super payment by BPay. I sent it to the fund at 4pm, it was in my super account the next morning.

So, for me the issue is resolved (don't use Xero for super payments).

Regardless, Xero need to fix this - the whole point of payday super was to ensure super is paid into staff accounts quickly. The new payday super service by Xero has exactly the opposite effect.

Hi, I came here to post the same message. Xero needs to talk with the other stakeholders ie clearing house and super fund, to get super payments arriving sooner. I submit super for payment on the same day I pay my employees wages and I see on zeros super report that it typically is 7 days later that my employees super fund gets the money. In an age where payment outages occasionally happen, various businesses are hacked or IT systems can go temporarily offline I want to see super arriving within a few short days on average so any delays don’t mean myself and thousands of small business owners have to lose deductibility of the super and have to pay all the penalties and pay bookkeepers to fill out the relevant late forms. That doesn’t seem fair when we are paying super the same day we pay wages!!