What is SuperStream?
SuperStream is aimed at improving the efficiency of the superannuation system. Employers make super contributions on behalf of their employees by submitting data and payments electronically in a consistent and simplified manner.
The main purpose of SuperStream is to ensure employer contributions are paid in a consistent, timely and efficient manner into a members account, and to remove many of the complexities employers currently face when paying employees super into different funds.
SuperStream will benefit employers with:
- The opportunity to use a single channel when dealing with super funds, regardless of how many funds your employees contribute to
- Less time spent dealing with employee data issues and fund queries
- Greater automation and reduced cost of processing contributions and payments
- More timely flow of information and money in meeting your superannuation obligations
Who does SuperStream apply to and when does an employer need to be compliant?
SuperStream is mandatory for all employers making super contributions to APRA-regulated super funds and self managed superannuation funds (SMSFs) receiving contributions.
If you have:
- 20 or more employees (medium to large employer) you must have started the transition process from 1 July 2014 and must comply by 30 June 2015.
- 19 or fewer employees (small employer) SuperStream starts from 1 July 2015 and you have until 30 June 2016 to meet the SuperStream requirements and become compliant.
What options do employers have to be compliant?
You have a number of ways to be SuperStream compliant, you can:
- Use your current software provider if they offer SuperStream integration
- Use an alternative superannuation clearing house, or
- Outsource to a payroll provider
What happens if employers do nothing?
It is your responsibility to be SuperStream compliant. The ATO can apply significant monetary penalties for non-compliance.
For more information go to www.ato.gov.au/super/
or contact Jacob Lea or any of the AFS Business Services team to find out how we can help you transition to SuperStream.