Get ready for SuperStream
SuperStream kick-starts on 1 July 2015 for businesses with less than 20 employees and you have until 30 June 2016 to meet the SuperStream requirements.
The new reform simplifies employer superannuation contributions by requiring all businesses to make payments electronically to all funds. Small businesses must take important steps to ensure they are SuperStream compliant by 30 June 2016. The earlier employers begin implementing SuperStream, the sooner they will avoid the risk of non-compliance.
Why is SuperStream being introduced?
The main purpose of SuperStream is to ensure employer contributions are paid in a consistent, timely and efficient manner to a member’s account. The change also removes many of the complexities employers currently face as a result of funds being able to set up different arrangements for accepting contributions (due to the lack of common standard).
This will also provide information to the ATO of late or missed payments that will then be matched to claims for taxation deductibility and follow-up or audit.
Options for making the superannuation payments
There are different solutions for making SuperStream contributions.
- Employers who use payroll software will need to ensure that the software is SuperStream ready.
- Small businesses who rely on external partners or their default super fund must check whether the funds comply with SuperStream requirements.
- Some employers may need to arrange an online connection and security log-in credentials if they are not connected to their provider.
A commercial clearing house service or the free Small Business Superannuation Clearing House (see https://www.ato.gov.au/business/super-for-employers/paying-super-contributions/small-business-superannuation-clearing-house/) can help employers meet SuperStream requirements on their behalf. Employers that work with a clearing house must arrange with them how and when they will receive the data.
What information you need to collect from your employees
Data must be collected for new and existing employees and updated in the payroll system.
- A fund’s ABN and employee tax file number are needed for all funds.
- An electronic service address and bank account details are required for SMSF’s.
- A Unique Superannuation Identifier (USI) is required for APRA-regulated funds only.
Make the first contribution
Once employers know their solution and timing, they should organise a target start date with their service provider. Members have some flexibility on their start-up date provided they do their best to implement SuperStream no later than 30 June 2016. Effective communication with the payroll and other service providers will ensure the first SuperStream contribution is a success.