What is SuperStream?
SuperStream is a reform aimed to improve the efficiency of the superannuation system. Under SuperStream, employers must report super contributions made on behalf of their employees by submitting data and contribution details electronically to superannuation funds at the time contributions are made. All contributions must be made electronically.
Contributors to superannuation funds who are sole traders, partners in partnerships, or beneficiaries of trusts may elect to use the SuperStream reporting method but they are not compelled to do so.
When will the changes come into effect?
Employers with 20 or more employees will be required to start sending SuperStream contribution data from 3 November 2014.However, such employers can commence sending data from 1 July 2014.
Small employers (those with less than 20 employees) can voluntarily send SuperStream contribution data from 1 July 2014, but are not required to do so until 1 July 2015.
SMSFs must be able to receive contribution information via SuperStream from 3 November 2014. They must provide their ABN, bank account details and an electronic service address to a contributing employer by 31 May 2014.
What must employers do?
Employers must be able to submit to superannuation funds the required data and contributions electronically by the required date.
Employers will need to use a clearing house if they do not have either:
- internal payroll systems that can submit this data electronically; or
- use payroll service providers, that have developed their own complying data and e-commerce systems.
Small businesses (less than 20 employees) can utilise the superannuation clearing house that has been established by the Government to help employers meet their SuperStream obligations. Registration with a clearing house can be done online at http:// www.humanservices.gov.au/business/ services/medicare/small-businesssuperannuation- clearing-house/registeryour- small-business.
Rather than using a clearing house, employers may transmit information and contributions directly to a superannuation fund. In most circumstances, superannuation funds are offering to act as the clearing house for employers at no cost. You should confirm this with the superannuation fund. If this service is not provided by the superannuation fund, then the following clearing houses offer such services:
- AustralianSuper
- Cbus Clearing House
- Vision Super
While most clearing houses will provide their services free of charge, you may need to become a registered employer with them, or nominate their superannuation fund as your default fund.
Enquiries
If you, as an employer, wish to discuss how the SuperStream changes could affect your business, please contact your Nexia advisor.
Noelia Pinto, Partner - Canberra
