SuperStream - The Way Forward

SuperStream Image for NL GREY
3
Apr

SuperStream - The Way Forward

03.04.14

As you may be aware, the government is seeking to streamline a lot of business processes. This includes a reform called SuperStream which is designed to improve the administrative function of the superannuation system.

 

The reform is expected to deal with:

  • Timely and efficient superannuation transactions with improved flow and accuracy;
  • Consolidation of multiple accounts and reuniting lost super; and
  • Regular information to employees on employer contributions.

 

WHAT THIS MEANS FOR YOU

This reform is compulsory for unrelated employers (see below) with more than 20 staff from 1 July 2014. For smaller employers, the effective date is 1 July 2015 although they can adopt earlier.

 

The reform requires employee super contribution data and payment details to be submitted electronically and for the superfund (including SMSFs) to receive contributions electronically.

 

WHERE TO FROM HERE?

For employers and superfunds alike, it means considering the following items:

  • Understanding when your employer will be implementing this reform and therefore when your superfund (including SMSFs) will be required to comply with the new reform.
  • Setting up an electronic service address for your fund (if you have a SMSF). As the information will be received electronically, your SMSF is required to have an electronic service address to receive contribution data message.

A register of SMSF message service providers is available here. There are other software providers currently working on this and a number of alternatives maybe available. Please contact us for more information.

  • Providing your superfund details to your employer. Ensure that your employer has a record of your bank account (BSB and account number) and electronic service address.

 

If you employ 20 or more employees, you will need to ensure you have the superfund details of your staff by 31 May 2014.

 

At present, it is our understanding that personal contributions made to your superfund are not required to be made in accordance to the reform above. We will provide you with an update should the circumstances change in the future.

 

If you have any questions regarding SuperStream or your superfund obligations in general, please contact your ESV engagement partner on 02 9283 1666.

 

Article by Donnashia Khoe