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PayVu

Whitepaper: Keeping Our Money Safe – Data and Security of Payments in 2020 and Beyond

By NPP

Whitepaper: Keeping Our Money Safe – Data and Security of Payments in 2020 and Beyond

The 2019 calendar year was marked by several high-profile data breaches and fraud attacks on organisations including superannuation funds in Australia. To help keep Australia’s retirement savings safe and keep pace with the level of growth requires a ‘double down’ commitment from superannuation funds, payroll providers and employers.

Now approaching the year 2020, and with the basic security payments at its heart, InPayTech has authored a whitepaper to set out the issues and remedy options.

Please follow the link here for the full version of the whitepaper.

Whitepaper: Data security – Does your SuperStream and STP process protect or expose you to data breaches?

By NPP

Whitepaper: Data security – Does your SuperStream and STP process protect or expose you to data breaches?

InPayTech has raised a number of timely questions regarding data security risks in Australia’s superannuation payments system, as more businesses utilise the Superstream and Single Touch Payroll (STP) processes.

A whitepaper on the subject of data security has been authored by InPayTech to highlight the importance of implementing secure data and payments processes.

Please follow the link here for the full version of the whitepaper.

PayVu delivers efficiency to bookkeepers

By NPP

PayVu delivers efficiency to bookkeepers

By Robin Beauchamp, CEO, Integrated Payment Technologies (InPayTech)

With the National Payments Platform (NPP) now in operation, and millions of real-time payments occurring on the platform, now is the time to consider the full potential of solutions that sit on the NPP which enable 24/7 real-time data-rich transactions.

PayVu acts as an overlay service sitting over the top of the NPP. The new bookkeeper-focused version of PayVu, launched at the Australian Bookkeepers Network ‘The Bookkeeping Event 2018’, is already revolutionising payments.

Below we describe the key benefits that PayVu can deliver to bookkeepers, improving how they provide payment solutions to their clients and the business opportunities it opens.

Security enhancement

Crucially, PayVu removes the need for third parties to handle a company’s payroll. This is a real advance in ensuring a payroll system is safe and secure. Data privacy is top of mind for bookkeepers now that many businesses are required to report data breaches under the Notifiable Data Breaches Scheme.

Agencies and organisations regulated under the Australian Privacy Act 1988 are required to notify affected individuals and the Office of the Australian Information Commissioner (OAIC) when a data breach is likely to result in serious harm to individuals whose personal information is involved in the breach.

For bookkeepers who deal with large volumes of personal data, using PayVu helps to promote trust between a business and its customers and employees. Trust is essential in delivering professional bookkeeping solutions and, while it can take a long time to establish, trust is easily destroyed in minutes.

So the best bookkeepers are vigilant about the security of their clients’ data.

With much personal and private information transferred as part of the payroll process, PayVu removes the need to:
• record or retain client banking credentials; and
• export files containing private and personal information from secure accounting systems.

PayVu also eliminates the need for employers to outsource payroll services, thereby diminishing the opportunity for illegal behaviour and breaches of data privacy.

In this way, as well as protecting personal data, PayVu protects against cybercrime.

Reduces processing times, boosts efficiencies

PayVu makes a bookkeeper’s job significantly easier by speeding up payments to near real-time, 24/7. It offers bookkeepers huge efficiencies by providing a single point from which to manage all business payments electronically.
The software significantly reduces manual processing, compliance costs, processing time and transfer times. It is SuperStream compliant, making superannuation payments simple, easy and virtually instant. This provides huge efficiencies to bookkeepers.

As an example, the technology uses smart phones to streamline the communication process, plus automation to remove the need for the bookkeeper to reverse payments rejected by a business owner. The saving supports a bookkeeper’s move from hourly billing to value-based ‘billing for outcome’, while freeing up time for bookkeepers to bid for new business.

PayVu streamlines and automates the process of administering and making payments with clients. The solution allows bookkeepers to provide an ‘all of business’ payments service, assisting the transition from client-centric to bureau work while strengthening customer relationships.

US Patent Imminent for InPayTech

By NPP

US Patent Imminent for InPayTech

Integrated Payment Technologies Limited (InPayTech) (ASX: IP1) has been issued a Notice of Allowance by the US Patent Office for its US patent application of its Payment Adviser process.

The US patent is expected to be granted by early 2019 in the name of its subsidiary company Jagwood Pty Ltd.

If granted as expected, this will be the seventh patent for InPayTech across the globe. Other patents in the western world include South Africa and New Zealand. InPayTech has also patented its payments process in Asia including China, Japan, Hong Kong and Singapore.

Chairman of InPayTech, Don Sharp says, “If granted as expected, this US patent will be a milestone for InPayTech. We believe this new technology will make payment processing more efficient while maintaining compliance. With this confirmation, we will continue with our existing patent applications for this product internationally.”

“We have already come a long way from when Payment Adviser Group was founded in 2006 and we are excited and encouraged by this latest achievement,” says Mr Sharp.

Payment Adviser is a process that allows unlimited data about payments to be communicated to the receiver of the payment via the security of the receiver’s bank account. The data is accessed by a short form URL, displayed in the reference field on their bank statement.

The Payment Adviser process is used by all InPayTech’s business products which are ClickSuper, Payment Adviser and PayVu.

Upon successful patent approval in the US, InPayTech intends to alert the Canada patent office where it also has a patent pending.

InPayTech has also lodged a patent application in Australia which is also pending approval.

ENDS MORE

Media Contact:

Bella Nguyen
Madden & Assoc.
+61 (0) 424 267 567

bella@madden.com.au

New payment system to cut super theft

By Fraud

New payment system to cut super theft

By Robin Beauchamp, CEO, Integrated Payment Technologies (InPayTech)

Some Australian employers haven’t been paying their workers all their superannuation entitlements, but new laws introduced in July 2018 are expected to change this.

From July this year, big employers were obliged to report their employees’ payroll details and compulsory superannuation payments to the Australian Taxation Office (ATO) through Single Touch Payroll (STP). The new reporting regime is mandatory for employers with 20 or more employees.

Employers are required to report payments such as salaries and wages, pay as you go (PAYG) withholding tax and superannuation guarantee (SG) information. These payments must be reported to the ATO from an employer’s payroll software solution each time the employees’ wages are paid.

Employer’s payroll software therefore needs to allow for STP reporting, otherwise, they may risk steep penalties from the ATO.

Super theft to diminish

Importantly, compulsory reporting of SG information will allow employer payments of superannuation to become more transparent.

The ATO estimates $2.85 billion, or 5.2 per cent of the annual $54.78 billion in SG obligations were not paid to employees in 2014-15. Research from Industry Super Australia concluded even more went unpaid, estimating employees were denied $5.6 billion annually in superannuation entitlements.

According to numbers from Industry Super Australia, this deprived 2.76 million employees of an average $2,000 in superannuation payments. The federal government itself doesn’t know exactly how much employers have ‘stolen’ from workers because the ATO has not, to date, monitored or measured the SG gap, as it’s called.

ATO on watch

The move to STP reporting will help significantly to reduce the number of employers who are not paying their employees the appropriate level of superannuation. Information will be provided to the ATO in real time, when wages are paid to employees. This will provide a clear record of employers who are not paying correct SG payments.

Under the former system, employers were required to collect and distribute superannuation accrued by its employees. The collection system was open to abuse since employers sometimes did not collect these payments and the ATO had little way of finding that out. Some employers also counted workers’ salary sacrifices as part of their 9.5 per cent SG obligation, thereby ‘stealing’ the employee’s SG entitlements.

Part of the problem was also that it was up to employees to raise the problem of non-payment of SG with their employers, or to report the issue to the ATO. Understandably, many workers were reluctant to do so, fearing that they might lose their jobs. Now, the ATO itself can more quickly identify non-payers of the SG and it can apply relevant penalties for employers for non-payment.

While the ATO announced that it will waive penalties for employers who fail to pay the correct superannuation to employees during a year-long amnesty period, penalties for employers caught after the amnesty period will be more severe, typically a minimum of 50 per cent on top of the superannuation that is owed to employees.

To be protected by the amnesty period, which runs for one year from 24 May 2018, employers must pay out all outstanding SG payments. If that is not paid to employees within the year, the ATO will apply penalties.

The right software is essential

STP reporting will give the ATO greater ability to identify non-payers of superannuation, but first, employers need to make sure that they have the right software in place that has STP technology.

The PayVu system will also avoid superannuation payments getting lost in the system, from which clearing houses have profited in the past. PayVu will help to eliminate this and get the refund sent directly to employers from where it can be re-contributed into employees’ accounts, where it belongs.

Employers too will spend much less time administering their super obligations and avoid complicated payment processes. So PayVu saves employer’s time, as well as minimises the risk of payment errors. PayVu and STP will help to reduce ‘wage theft’ and employers’ non-payment of SG obligations, which has cost workers billions of dollars each year.
The SG payment gap is about to be closed.

Taking the stress out of new super obligations

By NPP

Taking the stress out of new super obligations

By Robin Beauchamp, CEO, Integrated Payment Technologies (InPayTech)

Employers who don’t pay employees their full superannuation entitlements will face stiffer penalties under proposed federal laws, making it crucial for employers to get their payments systems right to ensure timely payments – and new payments technology can make this task much easier.

Businesses will be given a 12-month amnesty to pay workers any unpaid superannuation guarantee (SG) payments or face harsher penalties under a Bill the Federal Government has recently introduced into Parliament.

Under the proposed legislation, to use the amnesty, employers must pay all the SG that is owing to their employees, including interest. The amnesty will make it easier for employers to pay outstanding employee entitlements as the Federal Government will set aside penalties for late payment that are normally paid by employers.

Employers that do not take advantage of the one-off amnesty will face steeper penalties when they are subsequently caught – in general, a minimum 50 per cent on top of the superannuation they owe workers. Throughout the amnesty period, the ATO will continue its usual enforcement activity against employers for those historical obligations they don’t own up to voluntarily.

The Bill will also require superannuation funds to report employer contributions at least monthly to the ATO, allowing for the earlier identification of non-payment. Fraudulent businesses that deny workers their superannuation will find it harder to avoid getting caught.

The proposed new measures are welcome, and they are needed. The ATO has previously estimated that in 2014-15, around $2.85 billion in SG payments went unpaid. While that represented a 95 per cent compliance rate, any level of non-compliance is unacceptable as it is tantamount to wage theft, which is why the Government has given the ATO the resources it needs to enforce compliance.

Technology can help

New technology can help employers pay their workers their full superannuation entitlements on time.

InPayTech’s system, PayVu, significantly speeds up the payment of superannuation to the same day and reports these payments to the ATO via Single Touch Payroll (STP) as they are made.

For employers with 20 or more employees, STP reporting of SG payment information will be mandatory from 1 July 2018.  STP streamlines the way employers report tax and superannuation information to the ATO, which will be able to track which employers are paying the right amount of superannuation – and which ones are not.

Importantly, PayVu removes the payment delay incurred when an employer uses a clearing house to pay SG. When paying superannuation via a clearing house, an average of 4.2 days elapses between the money leaving the employer’s account and arriving at the superannuation fund’s account. PayVu payments are transferred the same day. The notion of ‘member direct’ payments is a crucial element to increasing the transparency and efficiency into the way salaries and superannuation are paid.

STP processing and the PayVu technology will also go a long way to avoiding superannuation payments getting lost in the system. If payments get sent to wrong accounts, PayVu will help to get the refund sent directly to employers, not a clearing house, from where it can be re-contributed into employees’ accounts, where it belongs immediately.

Quicker payment of superannuation will benefit employees as they can start earning returns on their money more quickly. As it is now, the refund can end up sitting in clearing houses’ accounts for an indeterminate time, and clearing houses earn interest on this – at employees’ expense.

Employers too will spend much less time administering their superannuation obligations and avoid complicated payment processes, saving valuable time and money.  If you haven’t already, as an employer you should update your payment systems to meet the ATO’s STP requirements and to ensure employees are paid their full wage and superannuation entitlements, on time, all the time, stress-free.

Automation: Opportunity or threat?

By NPP

What does automation mean for accountants and bookkeepers of the future?

By Robin Beauchamp, CEO, Integrated Payment Technologies (InPayTech).

Accounting and finance professionals not only handle money matters but business strategy and planning. That’s why many chief executives started out as accountants. They understand the importance of the bottom line and appreciate the impact of efficiency gains throughout business operations.

The role of the modern accountant and bookkeeper will inevitably progress beyond the balance sheet and ledger, to provide strategic business insights as automation replaces many of the core tasks they do. Indeed, accountants and bookkeepers are high on the list of service jobs that are being reconfigured by automation.

The flipside of automation is that it frees up time for bookkeepers and accountants to do more of the strategic thinking and business planning that organisations require. Such skills will be increasingly in demand by business leaders who will expect their staff to undertake more sophisticated roles as automation replaces their existing core activities.

That’s why accountants and bookkeepers are investing in their education, acquiring more sophisticated financial and technical skills, and improving their prospects.

According to the 2017 Bookkeeping Business Benchmark Report, conducted by the Australian Bookkeepers Network, bookkeepers are diversifying their service offerings, with a substantial increase in bookkeepers offering more services in management reporting, cash flow statements and budgeting, as well as software analysis and installation.

That has led to profit benefits, with bookkeepers lifting their charge rates in 2017 as they have offered more diverse and sophisticated services than traditional book entry, according to the 2017 report. One of these services is providing software training to clients, which is a service that 62% of bookkeepers now offer to their clients. And as more software is developed, demand for such services will likely grow. That compares to 10 years ago when software training wasn’t a core function of bookkeepers, rather of IT professionals.

So, while automation may initially seem like a threat to accountants and bookkeepers, it can in fact open other opportunities for career progression and service diversification. In this case, it has enabled bookkeepers to increase their charge rates as they diversify into more sophisticated offerings.

Software that has been launched in recent times to help bookkeepers includes PayVu, which bridges the gap between accounting, payroll and banking systems. Software such as this is good news for bookkeepers and accountants as it frees up their time for these significant value-add activities.

And this time saving is important for accountants and bookkeepers. The 2017 Bookkeeping Business Benchmark Report reveals obtaining timely and accurate data from clients and time management are the top two challenges that bookkeepers face. Automation is helping to overcome these constraints.

Marketing and sourcing new clients is another major challenge. Again, automation can help here as it will free up bookkeepers’ time to engage in business development, rather than manual book entry.

PayVu is designed for bookkeepers and accountants and can reduce the time they spend on administration. PayVu features instant display of all due payments from the client accounting system. Payments are selected and sent to business owners via their smart phone for approval or rejection.  Approved payments are immediately sent to internet banking systems and paid.

PayVu’s ability to automate all software and banking logins via secure multi-factor authentication can save a huge amount of time for bookkeepers, who, like every other person on the planet, struggle to remember their log-ins and passwords.

PayVu also links to accounting systems such as Xero, MYOB and Quickbooks and alerts suppliers once payment has been received. PayVu updates and reconciles payments in real time to allow both bookkeepers, their clients and suppliers to avoid any delays in payments.  Payments are processed with two factor authentication security along with full straight-through-processing (STP). This means bookkeepers can stop constantly chasing clients for approvals and feedback.

PayVu is just one example of software that is making life easier for bookkeepers and accountants and freeing them up to add value elsewhere in organisations.

NPP to boost superannuation efficiency and savings

By NPP

NPP to boost superannuation efficiency and savings

By Robin Beauchamp, CEO, Integrated Payment Technologies (InPayTech).

Australia’s superannuation members will benefit from the New Payments Platform (NPP) as employer contributions are paid more quickly into savers’ accounts and they earn a return sooner. The role of clearing houses could quickly become redundant if employers start making real-time payments directly to workers superannuation accounts.

The NPP is Australia’s new payments system, delivering data rich payments within seconds. Businesses and consumers can transfer funds to recipients real-time on a 24/7 basis, 365 days a year, if that money is being transferred to a person or business who has a registered a ‘PayID’ with the NPP. That PayID will be used instead of a bank BSB and account number and can simply be a mobile telephone number, email, ABN or business name.

The Commonwealth Bank of Australia has released a white paper with KPMG, The NPP and Superannuation, which says the NPP will benefit superannuation members significantly. Based on, for example, a 3% investment return, the switch to real-time payments from the average two-day lag could see total value generated of $19.2 million annually (for 100 per cent of Australian workers’ contributions, based on FY17 contributions of $116.9 billion), the white paper estimates.

Superannuation payments arrive more quickly

Despite SuperStream, superannuation payments are still getting lost in the system because data and monies still move separately under SuperStream, which was developed at a time when payment technology was less sophisticated, according to the white paper. Clearing houses have been managing these problems for superannuation funds and employers, however, this creates cost, complexity and delays in the system.

The NPP offers the potential to smooth out this web of payments, with its infrastructure and overlay services built on top. The NPP enables significantly more information to be sent with payments, allowing senders to attach up to 1,400 fields of data, including Tax File Numbers and ABN, says the white paper. Using that unique PayID for employees, employers will be able to direct funds in real-time to employees’ superannuation accounts and overcome the administrative burden of using a clearing house and keeping up with employees’ changing details.

The employer only needs to know the PayID and the employee becomes responsible for ensuring this is linked to the correct superannuation account at all times. This will make the job of a clearing house redundant – and it will avoid significant delays in the current system which are costing workers, and employers, money.

Need for overlay services

The NPP alone won’t deliver all payment services to superannuation funds. Overlay services will still be needed to add sophistication to real-time payments. Overlays are like apps which enhance or expand the service delivered by the NPP’s basic infrastructure.

InPayTech’s PayVu is an overlay style service that will sit on top of the NPP. PayVu can be used by employers to fully automate superannuation and payroll payments to employees and taxation payments to the ATO. Importantly, PayVu bridges the gap between accounting and payroll systems, and the ATO. PayVu is being integrated with Xero, MYOB and QuickBooks, allowing for the more intelligent processing of payments.

PayVu enables employers to avoid clearing houses and make direct payments to a member’s superannuation fund. This reduces the time it takes payments to go to employees’ funds from an average four days to same day. PayVu will go a significant way to reducing some employers’ lack of compliance with their superannuation obligations.

PayVu complies with SuperStream and that will be on many employers’ minds as mid-year approaches. For employers with 20 or more employees, Single Touch Payroll (STP) reporting of SG payment information will be mandatory from 1 July 2018.

Need for collaboration

The white paper calls on the superannuation funds to take a collaborative approach to developing overlay payment services.

“It is really incumbent on the funds, in collaboration with their bank and the right expert advice, to really understand the pain points and work together to co-design a solution,” says Michael Eidel, Executive General Manager, Cash-flow & Transaction Services, Commonwealth Bank of Australia.

However, collaboration between superannuation funds isn’t realistic. Superannuation funds are like the big banks; that is, they do not co-operate or collaborate; they compete against each other. So, I do not expect this proposal will ever get up. It took legislation and the might of the Australian Taxation Office to push funds to adopt SuperStream. They are hardly likely to raise their hands to work together to develop payment solutions.

This makes the importance of third-party overlay services like PayVu more important.

Benefits of direct payments

The benefits of superannuation payments being made directly from an employer’s own bank account (and not a clearing house) include:

• Giving employers a direct relationship with each employee’s superannuation fund (and vice versa)
• A potential dollar benefit to the fund member
• A benefit to superannuation funds that are able to deal directly with the employer, not the clearing house, which is more efficient
• The direct return of superannuation money into the employer’s bank account whenever the superannuation fund is unable to process the contribution. Currently, returned funds suffer delays through the clearing house being paid, then being reconciled, before returning to the employer.

Another big benefit of STP is that it will help to avoid employers not paying employees super. STP reports Superannuation Guarantee (SG) contributions directly to the ATO when salary payments are made, enabling the ATO to more closely track non-payment. That will take the onus off employees to report non-payment of superannuation. So, the benefits of STP are many fold.

About InPayTech

InPayTech is an ASX-listed technology company that has developed a software as a service system, called PayVu, to help employers meet their new STP requirements. PayVu fully automates payroll, superannuation and taxation payments to the same day and reports these payments to the ATO using STP. Importantly, PayVu reduces the transaction time of superannuation payments from the average of 4.2 days (if a clearing house is used) to payment the same day.

Understanding STP and its benefits

By NPP

Understanding STP and its benefits

By Robin Beauchamp, CEO, Integrated Payment Technologies (InPayTech)

The Federal Government is arming the Australian Taxation Office (ATO) with additional funding to monitor employers who are not paying correct superannuation guarantee (SG) entitlements to their employees.

Employers’ failure to meet their SG obligations has long been a problem since the introduction of the system of compulsory superannuation in 1992.

A Senate Economics References Committee recently said it is deeply concerned by analysis by Industry Super Australia that suggests employers failed to pay $5.6 billion in SG contributions in 2013-14. No doubt that number has climbed since then given wages and employment growth.

To firmly crack down on this problem, the Government is providing the ATO with additional funding to monitor employers’ non-compliance. The package includes requiring employers to adopt Single Touch Payroll (STP) reporting to to ensure SG payments meet the minimum payment frequency (quarterly) and introducing greater penalties for employers where they don’t pay the right amount of superannuation to their employees.

What is STP?

Single Touch Payroll (STP) involves automating an entire transaction from start to finish by using software to eliminate paper-based work. As payment reporting is fully automated, STP reduces the possibility of reporting errors while introducing greater transparency due to the ATO being able to monitor all aspects of wages and superannuation payments.

In terms of superannuation, the Federal Government will require employers to begin adopting STP for SG payments from 1 July 2018.

The key components of STP include:

  • Employers report on an employee’s salary and wage amounts (including ordinary time earnings) and PAYG withholding amounts to the ATO; and
  • Superannuation Funds report on superannuation contribution information to the ATO at the time payments are received.
  • Employers with 20 or more employees will need to transition to STP from 1 July 2018 with smaller employers being required to adopt STP from 1 July 2019. This will align employers’ payroll function with the regular reporting of taxation and superannuation obligations to the ATO.

The benefits of STP

When employers report their employee’s ordinary time earnings using STP, this will enable the ATO to calculate a reasonable estimate of their employees’ SG entitlements. Where employers aren’t paying the correct amounts, the ATO will be able to step in to require employers to pay their SG obligations. This will reduce the ATO’s reliance on employees to report non-compliance by employers. This is a good thing; often workers may be reluctant to ‘dob in’ their boss or may not even be aware they aren’t receiving the correct amount of superannuation.

The collection of superannuation contribution data through STP will also enable the ATO to display this information in individuals’ MyGov accounts, Australians will therefore have easier access to information about their superannuation via this government platform which houses much of their taxation, medical and other records.

Additional action on super

Other measures the Turnbull Government is taking to enforce SG payments include requiring superannuation funds to report to the ATO more frequently SG contributions received from employers (at least monthly). This will enable the ATO to identify non-compliance earlier and take prompter action against non-compliant employers.

The Federal Government is also improving the effectiveness of the ATO’s recovery powers, including strengthening director penalty notices and using security bonds for high-risk employers, to ensure that unpaid superannuation is better collected by the ATO and paid directly to employees’ superannuation accounts.

The Government is also giving the ATO the ability to seek court-ordered penalties for employers who are repeatedly caught failing to pay their SG liabilities.

The bottom line

STP processing will also go a long way to reducing employers’ non-payment of their SG obligation and reducing this ‘wage theft’, as it has been called.

About InPayTech

InPayTech is an ASX-listed technology company that has developed a software as a service system, called PayVu, to help employers meet their new STP requirements. PayVu fully automates payroll, superannuation and taxation payments to the same day and reports these payments to the ATO using STP. Importantly, PayVu reduces the transaction time of superannuation payments from the average of 4.2 days (if a clearing house is used) to payment the same day.

So, employers will be able to take control and automate the payroll process. No more writing cheques or manually inputting wages and superannuation data.

PayVu will sit as an overlay on top of the New Payments Platform (NPP), which will be launched in November 2017. The NPP will enable businesses and government agencies to make faster payments, with near real-time funds availability to the recipients. Payments will be data rich and fully transparent.

Are Australia’s superannuation payment clearing houses becoming redundant?

By NPP

Are Australia’s superannuation payment clearing houses becoming redundant?

By Robin Beauchamp, CEO, Integrated Payment Technologies (InPayTech)

Clearing houses have been essential fixtures within Australia’s $2.3 trillion superannuation ecosystem. They make payments on behalf of employers to employees’ superannuation fund accounts. They can save employers considerable time and money. But new payments technology may make clearing houses redundant.

Typically, an employer makes a single payment to a clearing house which then distributes superannuation contributions to employee’s member funds on the employer’s behalf. The administrative pain and complexity of making superannuation payments can be significantly reduced by using a clearing house.

Smaller businesses – those with fewer than 20 employees, or with an annual turnover of $10 million or less – can access the Federal Government’s Small Business Superannuation Clearing House, a free service. Most super funds also provide access to a clearing house service, as well as private super clearing houses, though they may charge fees.

Change is coming

The arrival of the New Payments Platform (NPP) together with automated payment technologies, means change is on the horizon for traditional clearing houses and the companies who utilise their services. The future role for clearing houses as a pivotal component of superannuation fund payments is dramatically diminished.

InPayTech’s own proprietary technology is a good example of the kind of technological advancement that is creating greater efficiencies and reducing cost. Such technologies are disrupting the payments chain within superannuation.

Our product or solution is called PayVu. It is software as a service with the capacity to fully automate payroll, superannuation and all business payments including taxation. Importantly, PayVu removes the payment delay incurred when using a clearing house. When paying superannuation via a clearing house, an average of 4.2 days elapse between the money leaving the employer’s account and arriving at the superfund’s account. PayVu payments are transferred the same day.

PayVu removes the clearing house ‘middle man’ by promoting the straight-through-processing of superannuation payments. It adds immediate ease, efficiency and security to the direct payment of employee super entitlements and gives control over any returned payments back to employer.

PayVu will operate like an overlay of the NPP, which will be launched in November 2017. The NPP will enable businesses and government agencies to make faster payments, with near real-time funds availability to the recipient, on a 24/7 basis, 365 days a year, so public holidays and weekends won’t slow down superannuation payments.

The benefits of using PayVu to automate payroll and super payments from an employer’s own bank account (and not a clearing house) include:

  • Giving employers a direct relationship with each employee’s superannuation fund (and vice versa)
  • Compliance with the Government’s SuperStream reporting regime
  • A potential dollar benefit to fund member (by having their retirement savings monies invested in their super account 4.2 days earlier)
  • A benefit to super funds that are enabled to deal directly with the employer, not the clearing house, which is more efficient
  • Removing any need for employers to manually match data to payments in their accounting software
  • The direct return of superannuation money into the employer’s bank account whenever the superfund is unable to process the contribution. Currently, returned funds suffer delays through the clearing house being paid, then being reconciled, before returning to the employer.

The introduction of this system to Australian small employers has far-reaching efficiency benefits. We continue to explore other applications for PayVu technology beyond the superannuation sphere, and are excited to be focusing for the moment on making the payment of retirement savings far more speedy and efficient for SMEs.