How to go with the flow – What does SuperStream mean for you?
As an employer you’ve probably heard the term SuperStream and may be wondering what exactly it will mean for you and your staff. By the 30 June 2016, ALL employers will have to go with the flow of the new SuperStream reforms, which is why we’ve put together this guide to help you understand what’s in store and how to meet your obligations.
What is SuperStream?
“SuperStream”, is the Australian Taxation Office (ATO) reform to the payment and reporting of super contributions by employers to superannuation funds.
What does this actually mean and how does it affect you?
Why do we have SuperStream?
SuperStream is aimed at improving the efficiency of the superannuation system. Under SuperStream, employers must report super contributions on behalf of their employees by submitting data and payment details electronically in accordance with the SuperStream standards. All superannuation funds, including self-managed superannuation funds (SMSF), must receive contribution details electronically in accordance with this standard.
Who does SuperStream apply to?
SuperStream applies to ALL employers making contributions on behalf of their employees. There is an exception to the rule where contributions are made to super funds for ‘related parties’ of the employer.
As an employer, how can you ensure compliance?
All employers need to determine before 30 June 2016 which option for paying contributions is suitable for them.
Options include the following:
• Upgrade payroll software
• Outsource payroll
• Use a clearing house
Employers using payroll software should investigate software upgrades required to meet compliance with SuperStream or alternatively, if you outsource payroll or use a clearing house, you will need to contact the provider to determine additional information required in the payroll file you provide to them.
How do I obtain the additional data for my employees superannuation payments?
By now, all superannuation funds will have contacted employers and provided the following:
• Unique superannuation identifier (USI) for APRA-regulated funds
• ABN for SMSF funds
• BSB and bank account number
• Electronic Service Address (ESA)
If an employee’s details have not been provided where the employer contributes to a self-managed super fund, employers may ask the employee to complete and return a standard choice form.
For new employees this additional information is included on the choice of super fund form.
If you do not have the required information for an employee, you must obtain this information prior to 30 June 2016. The following may be sources of the additional information:
• Direct from your employees super fund
• Via Fund Validation Service
• Via your clearing house
• Standard choice Form for employees who have elected SMSF
SuperStream will be compulsory for ALL employers, no matter the size, by 30 June 2016. This means both data and payments will need to be made in a specified electronic method to meet the SuperStream data & payment standards. Employers need to take action to ensure compliance by the relevant deadlines.
SuperStream will greatly improve the efficiency of the superannuation system through faster and more efficient processing of data and payments, reducing administrative costs and improving savings for superannuation fund members.
To find out more about SuperStream, you can view the ATO’s SuperStream video, outlining the process you need to follow for your business.
If you have any questions, issues or concerns in making your business SuperStream-ready by 30 June 2016, please contact a member of our team on (07) 4638 1155 to assist you.