MYOB "borrowing" money without approval or interest

DavidM1
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MYOB "borrowing" money without approval or interest

This is how MYOB "borrows" our money for a week or two for free, and would be lambasted for it by the Financial Royal Commission as they did the Fund Managers and Superannuation Industry, when they were doing the same things.

The following is the text from MYOB on why the Super contributions had been taken from the bank account but not paid to the super funds for more than a week.  

 

If the payment was authorised by 3:30pm AEST, then the money would be deducted from your bank account overnight. After that there will be a standard 3 business day banking clearing period in accordance with Australian Payment Clearing Association regulation. On the fourth day the clearing house will transfer the money to individual super funds.

Often the Super Funds would receive the payment on the 5th business day, however some funds would take longer to receive the payment as they still require cheque payment. Generally speaking you can expect a 5-9 day clearing period for the payment to reach the funds.

 

In fact the three business day rules applied a number of years ago to CHEQUES, and never applied to EFTs - Electronic Fund Transfers. Do you know of any Super Funds that REQUIRE to receive payments via Cheques?

If enough people complain, maybe MYOB will stop borrowing our money without interest or approval.

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Experienced User Davedog
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Re: MYOB "borrowing" money without approval or interest

Wow, that's incredible. It's been a while since I saw a cheque. 5-9 days clearing is criminal. With over half a million subscribers in Australia ( I believe) many of whom I assume would be paying super, how much interest would they garner from that?

Ultimate Partner BooksInTheCloud
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Re: MYOB "borrowing" money without approval or interest

It is not MYOB fault of the Superannuation Funds want payment via cheque.   You can't really expect that MYOB would deduct funds and have them cleared out to the Superfunds the next business day.     I don't think the MYOB subscribers would really be worried about this... they are all happy not to have to deal with paying multiple funds and save time by using the MYOB Pay Superannuation facility.   


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Renae

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Experienced User Davedog
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Re: MYOB "borrowing" money without approval or interest

Or they can just use the free ATO super clearing house. From the posts on the forums I think there are quite a number of MYOB subscribers that are not happy at the moment and I don't believe that 9 days is an appropriate amount of time. The facility to Pay Superannuation through MYOB is part of the subscription that MYOB subscribers pay for. Nothing on MYOB at the moment is saving me time which is why I am working at 1am.

Experienced User MinEr916
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Re: MYOB "borrowing" money without approval or interest

so i thought, 3 days is applicable to cheque clearing.  apparently not.  even with EFT, smaller/regional banks may take up to that amount of time to reach.

hence why, i do not use myob's pay super.  thankfully, i don't have a large payroll.  but ar2019 has been nothing but a pain.

Ultimate Partner BooksInTheCloud
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Re: MYOB "borrowing" money without approval or interest

You will find the ATO clearinghouse would not automatically transact the next business day either.  

 

If you think about it logically the majority of small business owners will most likely:

  1. Authorise Pay Superannuation of an evening after 6 pm - money won't clear into MYOB end until 2 working days after.
  2. The cheque is printed and sent in snail mail most likely if a provider wanting a cheque.  2-3  working days later.
  3. Provider banks cheque and then the cheque most likely has to clear 3 working days. 

 There is 6-8 days right there!

 

The word ''clearing'' house says it all.   As I said who really cares small fry better things in life to worry about!


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Renae

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