Monthly Archives: November 2024

28/11/2024

Payday Super: What it means for superannuation funds

The shift to Payday Super will transform superannuation, bringing both new demands, as well as new and exciting opportunities for funds. Here’s what you need to know.

The current state of superannuation

200 million contributions annually: Today’s superannuation transaction network processes around 200 million contributions each year. Error rates: An error rate of 1.6% is seen across the 200 million transactions that go through the superannuation transaction network. However some payroll providers and clearing houses report much higher error rates of 11-12%. Current timeframes: Funds currently have 20 days to allocate contributions to member accounts.

The Payday Super shift

Significantly increased contributions: Under Payday Super, contribution volumes are expected to rise 3-5 times, to 600 million to 1 billion per year. More errors than ever: With the number of contributions set to rise significantly, error rates are likely to increase. This will require funds to manage errors more efficiently, through automation and streamlined processes. Shorter timeframes: Under Payday Super, it’s expected funds will have 3 days from when they receive funds, to allocate them to the member account.

The implications for super funds

Rising costs: With increased contribution volumes and tighter timelines, the costs of existing services may rise. Higher risk of errors: If the error rate stays the same, there is set to be a large rise in the number of errors, requiring additional resources to manage corrections. Demand for efficiency: Funds will need tools that reduce the admin burden, streamline workflows, and ensure compliance within reduced timeframes.

The opportunity: Automation and new payment methods

The evolution of super contributions brings new tools and opportunities for funds, including: New Payments Platform (NPP): Real-time payment processing and PayTo, which allows funds to be pulled from accounts instantly, enable faster, more secure transactions. Business automation: By automating tasks such as validations, error checks, and payment pulls, funds can reduce manual processes and improve efficiency across operations. Automation can be setup to only pull funds once validations have occurred, significantly reducing the admin burden of funds.

Maximise the value from your service provider

With the demands of Payday Super, funds need to get the most out of their service provider. MessageXchange is uniquely positioned to meet these needs: Future-ready solutions: We support current batch payment methods, such as Direct Entry (DE) within the BECS framework, set for decommissioning in 2030, along with real-time options through the New Payments Platform (NPP), including PayTo. Advanced business automation: Our automation tools are designed to handle complex processes, reduce errors, and minimise time spent on manual tasks. Proven experience: Trusted by some of Australia’s largest businesses, we simplify complex workflows and payments, allowing funds to focus on delivering value to their members.If you want to learn more about our superannuation services? Ask our experts by getting in touch below.

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26/11/2024

Process for onboarding suppliers to EDI

EDI implementation has many stages, but onboarding is one of the most crucial. The better your supplier onboarding, the greater the automation and efficiency. Here's a quick step-by-step process on how to get the most success during onboarding from our own experience with customers.Check out our Ten Steps to Successful Community Onboarding whitepaper for information about the steps to onboarding success.Want to learn more about our implementation process? Ask our experts by getting in touch below.

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14/11/2024

New Zealand eInvoicing: New government procurement changes

The New Zealand Government has recently changed their procurement rules for suppliers. These changes look to benefit suppliers, particularly small and medium business, with their cash flow. Here’s a breakdown of the changes.

What changes are coming?

The New Zealand government is updating its procurement rules to expand the use of eInvoicing across a wider range of public agencies, and has set a target for agencies to pay eInvoices in 5 days, in a view to boost efficiency and support businesses. These changes were announced by Economic Development Minister Hon Melissa Lee and Small Business and Manufacturing Minister Hon Andrew Bayly on the 5th of November 2024. Starting January 2026, about 135 government agencies, including major ones like ACC, Waka Kotahi (NZ Transport Agency), Health NZ and NZ Police, will need to be able to receive eInvoices and pay 95% of domestic trade envoices within 5 business days. Agencies who send over 2,000 invoices per annum will also be required to send them as eInvoices. Michael Alp, the eInvoicing Executive Sponsor and Chief Operating Officer at MBIE, emphasised the benefits already being seen by businesses, such as faster payments, better cash flow, reduced administrative work, and improved security. The push towards eInvoicing is expected to streamline transactions, minimise errors, and reduce the risk of payment fraud, creating a more efficient and reliable payment system for New Zealand’s public sector suppliers. The Government will also begin consulting with businesses on requiring certain government suppliers to send eInvoices as part of the Government Procurement Rules, with he outcomes to be reported back to Cabinet in February 2025.

Why are they being introduced?

The Government is ambitious about lifting New Zealand’s economic productivity and improving public sector efficiency, which means adopting smarter ways of working. Prompt payment is especially important for small businesses which have limited cash reserves – an unpaid or late invoice can be the difference between being able to pay staff on time or not. Having invoices paid on time can mean a world of difference to small and medium sized businesses

How to get started with eInvoicing

The best time for government agencies and businesses alike to get started with eInvoicing is now. For government agencies, earlier implementation means avoiding the rush. For businesses, it means getting faster payments earlier. The process to get started is easy:
  1. Look at your business processes This is to understand your current business processes and where eInvoicing could fit. It’s important to set objectives for your eInvoicing and have buy in internally.
  2. Review software capabilities
    • Does your software support eInvoicing?
      • If so, to what extent? Some software providers will offer a fully-integrated solution, while others might produce a file and customers will have to find their own Access Points.
      • Does eInvoicing require an update or an additional cost?
    • Does your software produce the Peppol file? If it doesn’t, your Access Point may be able to translate the file to the Peppol format.
    • Is your software cloud based or on-premise?
    • What connection protocol your software can work with?
  3. Find an access point Look at access points and the solutions they provide, a few things to think about should be:
    • Technical capability Make sure they can get you connected with your partners and the Peppol network quickly and easily. You should also be looking for a provider that can offer other services to future proof your investment.
    • Experience It is important to know about your provider’s experience and how they keep up to date with eInvoicing developments.
    • Pricing and support Understand exactly how you will be charged and what support you will receive to avoid any conflict in the future.
Check out our A guide to adopting eInvoicing whitepaper to learn more here.Want to get started with eInvoicing? Ask our experts by getting in touch below.

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