SuperStream is a new Government reform to simplify the superannuation system and make the payment and reporting of super contributions more efficient. Under the SuperStream reform super contributions MUST be made electronically and pass through the SuperStream Network.
The Cooper review defines SuperStream as “…a package of measures designed to bring the back office of superannuation into the 21st century. Its key components are the increased use of technology, uniform data standards, use of the tax file number as a key identifier and the straight through processing of superannuation transactions.”
What does that mean for employers?
SuperStream will set a standard for minimum data reporting and payment transmission requirements. Employers will have to use an online solution to make super payments and Super Funds will have to receive contributions via an online solution.
Using a Clearing House?
With a small business you can also use a clearing house. The Small Business Superannuation Clearing House is a free online super payments service that helps small businesses with 19 or fewer employees meet their super guarantee obligations. It’s free, quick and easy to use, but if you’re using someone else, check if they have implemented or are ready to implement SuperStream, to ensure you’re ready.
Cloud Accounting makes the SuperStream transition easy for employers!
As of last year many providers included the “Auto Super Payment Feature” as part of their software solution. Several other software providers have, or are looking to implement this ability soon.
What does this mean for SMSFs?
For SMSF’s to comply with the standard, every SMSF that receives employer contributions will need an electronic service address (ESA) and the software to receive their SuperStream data. Trustees will need to provide this address to their employer in order to receive their contributions. If you are a Trustee of an SMSF, talk to your accountant to submit your compliance requirements with BGL – this is what we use for our SMSF SuperStream solution which allows you and your Accountant to process and access all the necessary data.
When does this all Happen?
It’s happening now! If you are an employer and have 20 or more employees your SuperStream obligations started from 1 July 2014 and must be fully implemented by 30 June 2015. Employers that employ less than 20 people will have until 30 June 2015 to implement. For Trustees of SMSFs, it will depend on your situation, however, you can’t be ready too soon, so speak to your accountant today!