Time is Running Out! Is your Business SuperStream Ready?

By now you all should have heard of SuperStream. It is a government reform aiming at improving the efficiency of the superannuation system and it’s happening now!

As of July 2016, companies with 19 employees or less will join larger companies in switching to electronically-made superannuation payments under the ATO’s SuperStream model. For employers, this means super contributions are easier to transact and more efficient for everyone.

Now, all contributions will be managed online and in the same way. It will now be mandatory for employers to send contribution data to a nominated fund, while the payment is sent electronically through the banking system. SuperStream ensures the message and payment are linked by a payment reference number so they can be reconciled by an employee’s fund.

Going online and ditching cheques or other paper-based super contributions means employers can easily search tax file numbers in the database. Errors are also easily picked up and the time taken to fix them is reduced.

The only exemptions from SuperStream are Self Managed Super Funds where the fund:

• Does not receive any employer contributions (eg the Fund is in pension mode), or
• Only receives personal contributions by members (monies from your own pocket and not an employer), or
• Only receives contributions from related party employers (you run your own business and have an SMSF that your business pays into as your employer).

How to get ready

Firstly, employers will need to select a provider who will be able to assist with the delivery of this electronic reporting and payment service. Providers need to meet strict requirements administered by the ATO and must be on the list of approved providers (available on the ATO website). The various options available include:

• Your default Super Fund
• Clearing house (free service provided by the ATO to businesses with 19 or fewer employees, and from 1/7/15 for businesses with annual turnover less than $2million)
• Payroll software provider (may provide both payment and reporting, or may only provide reporting)
• Outsource to payroll/salary packaging provider
• Accountant or bookkeeper
• Some banking institutions.

Next you will need to collect extra information from your existing employees. Your SuperStream provider should be able to provide you with a list of these, it should include:

• Employees’ Tax File Number
• Super fund ABN
• A Unique Superannuation Identifier (USI) (APRA regulated funds only)
• For employees who have selected a SMSF for their contributions, they will also need to provide their Fund’s Bank Account details and Electronic Service Address (ESA).
• For new employees, the ATO have updated the Super Choice form to include collection of the extra information required.

If you any questions on how SuperStream will change the way you make super contributions to employees, please contact:

Ashwind Skinnon
Manager Business Advisory
Ph (03) 9690 5700