What SuperStream means for you
SuperStream is a package of reforms related to electronic payments and data standards within the Superannuation sector.
The current stage of SuperStream deals with the payment of superannuation contributions. From 1 July 2014, all employers with 20 or more employees will be required to pay superannuation contributions electronically, along with electronically transmitting key data relating to those contributions, including details of the member it relates to and the components of the contribution (eg SGC, salary sacrifice, employee contributions).
Smaller employers will be subject to these measures from 1 July 2015.
So what does this mean for employers?
If you have 20 or more employees, you must make sure your payroll processes will be SuperStream compliant. If you use in house software to process your payroll, you should check with your software provider that they will be SuperStream compliant from 1 July 2014. (Our understanding is that Xero, MYOB and Reckon will all be compliant in time for 1 July 2014).
If you use a payroll bureau, or a superannuation clearing house, then please check that they will be SuperStream compliant, and what information they will need from you and your employees to move to the new system.
If you have been using paper based systems, now is the time to speak to us about moving your payroll function to an electronic platform that is compliant and best suits your needs.
What does this mean for superannuation funds?
If you are the trustee of your own self managed superannuation fund, you need to get your fund ready to receive contributions and data electronically from affected employers.
This means that by 31 May 2014 you need to provide employers with the following details about your fund:
- Banking details for electronic funds transfer
- An electronic service address
Note an electronic service address is different to an email address. It represents an account with a registered service provider (the current list of registered service providers from the ATO website can be found here). A small fee may be involved in creating and maintaining an electronic service address.
Are there any exceptions?
These measures do not apply to contributions between related employers and superannuation funds. So any superannuation contributions from a business you control to your own SMSF are not required to be paid electronically.
The ATO is progressively contacting employers and funds that are affected by these measures as part of the roll out of these measures, so keep an eye out and contact us if you have any questions.