Mill Park, Victoria 3082
Who does SuperStream apply to?
SuperStream is mandatory for all employers that make superannuation contributions for employees using either an APRA-regulated super funds or a self-managed superannuation fund (SMSFs).
According to the ATO the SuperStream standard is part of the government's Super Reform package. Designed to provide a consistent, electronic method of transacting, that links data and payments to superannuation funds as contributions.
It has been implemented to improve the efficiency of contributions, assist with the timeliness of rollovers, while attempting to reduce the amount of lost accounts and unclaimed monies within the superannuation system.
Employers must make their payments by an electronic bank transfer, and can no longer make superannuation payments by any other means. If you continue to send cheques, you will not be compliant with SuperStream and may face penalties under the law.
For employers with 19 or less employees.
SuperStream will start from 1 July 2015. You have until 30 June 2016 to meet the SuperStream requirements when sending an electronic transfer for superannuation contributions for employees.
Your options may include:Superannuation
- upgrading your payroll software
- using an outsourced (external) payroll function or service provide
- using a commercial clearing house or the free Small Business Superannuation Clearing House (19 or fewer employees).
For employers with more than 20 employees
SuperStream started from 1 July 2014. From that date, employers needed to start implementing SuperStream and have until 30 June 2015 to meet the SuperStream requirements when sending superannuation contributions by an electronic transfer for employees.
Self Managed Super Funds (SMSFs)
If you have a Self Managed Super Fund you will need to register your SMSF on the Register of SMSF messaging providers as from 1st July 2014.
The ATO has stated that "From 1 July 2014, self-managed superannuation fund (SMSF) trustees are required to receive both electronic messages and payment when making contributions for employees using the SuperStream data and electronic payments."
As an SMSF trustee, you will need to obtain an electronic service address (alias) from an SMSF messaging provider so that you can receive contribution messages sent using SuperStream.
Once the SMSF is registered with the messaging provider, they will be able to link your SMSF with the electronic service address of the provider.
If you have an employer, the employer will need your SMSFs electronic service address and bank details to be able to make contributions to your fund electronically.
SMSF members should be aware that if they do not provide their fund's Australian business number (ABN), electronic service address and bank details to their employer, they may be asked to complete a standard choice form.
Below is a link to a register of SMSF messaging providers and it is open to all SMSF trustees.
Feel free to contact us on 1300 488 330 or via our contact us page if you want to discuss this with one of our expert accountants.
