SuperStream is part of the government’s ‘Stronger Super’ reforms. It came into effect in 2013 and is a standard way to process superannuation data and payments electronically. It must be used by employers, self-managed super funds and APRA regulated funds. SuperStream data is in a standard format so it can be transmitted consistently across the super system – between employers, funds, service providers and the ATO. The data is linked to the payment by a unique payment reference number. This means you can make all your contributions in a single transaction, even if they’re going to multiple super funds. Small employers (less than 20 employees) must meet the SuperStream standard by 30 June 2016. SuperStream is mandatory for all, failure to comply may give rise to penalties by the ATO.
For employers under SuperStream, superannuation contributions are paid for their employees electronically (EFT or BPAY) and associated data is sent similarly. Tax file number, ABN of Superfund, BSB and account number and the Electronic service address must be provided in order for superannuation contributions to be processed accurately.
SuperStream Advantages: –
- Employers can make all their contributions in a single transaction, even if they’re going to multiple super funds.
- Contributions and rollovers can be processed faster, more efficiently and with fewer errors.
- People can be more reliably linked to their super, reducing lost accounts and unclaimed monies.
- The processing of contributions and payments will be more automated.
- Employers will save time and money in meeting superannuation contributions.
- Compliance with ATO data and payment standards.
SuperStream is compulsory for employers making superannuation contributions. This includes Super Guarantee Charge, additional employers, member’s voluntary and salary sacrifice contributions. It gives employers greater efficiency and accuracy when meeting their super obligations. The benefits to use one channel to make contributions on behalf of all employees, regardless of how many super funds are recorded would mean that it saves us time dealing with the accuracy of employee details and data, plus the automatic reporting and processing of contributions and payments made.
At this stage, it is the final countdown to get ready for SuperStream and the ATO urges small business to implement SuperStream and act now. It will be mandatory from 1 July 2016 and more than 65% of all Australia’s small businesses are already on board. It has been reported by those who started using SuperStream that on time spent on superannuation processing has been cut by around 70% each cycle. To find out more about SuperStream visit the ATO website or contact a superannuation provider.