SuperStream is a new government reform seeking to improve the efficiency of the superannuation system. It will be compulsory for all employers to submit their super payments and the accompanying data electronically. This means no more sending cheques in the mail to an employees’ nominated super fund.
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 SuperStream data and payment standard is a set of minimum conditions for data and payment transmission including a minimum set of prescribed data. It is designed to improve the productivity of the superannuation system by introducing common data items, electronic communications, simpler channels and faster business processes for sending employer contributions.
The key items that a business must be aware of are:
- Employers must make super contributions electronically
- Contribution data is sent electronically in a message format to the fund
What this means for businesses is you’ll have two options to assist compliance:
- Utilise a software solution that conforms to SuperStream – this may involve upgrading to the latest version of your software
- Utilise a service provider who can arrange SuperStream compliance on your behalf
When does SuperStream commence?
If you are a medium to large employer (20 employees or more) you should already have SuperStream in place i.e. sending of contributions electronically, in a prescribed format, with linked data and payments.
If you are a small employer (19 or fewer employees) you have until 30 June 2016 to meet the SuperStream requirements.
What are my options for meeting SuperStream?
Employers have options for meeting SuperStream which include using software that conforms to SuperStream; or using a service provider who can meet SuperStream on your behalf. You may need to review whether your payroll software is compliant with these new reforms. Small employers have an additional option of using the free Small Business Superannuation Clearing House.
Contact your advisor from HTA Advisory today to ensure a smooth transition to the SuperStream reforms and ensure you are SuperStream compliant.
Let us lighten the administrative burden of these new requirements!