SuperStream is a Government reform aimed at improving the efficiency of the superannuation system. It requires an employer to send contributions electronically in a standard format with linked data and payments.
SuperStream is mandatory for all employers making super contributions and once implemented promises to simplify making contributions by reducing cost and effort and eliminating unnecessary variation in how contributions are made.
If you're not compliant, you could be penalised by the ATO.
Employers with 19 or fewer employees - You need to be using SuperStream no later than 30 June 2016.
Employers with 20 or more employees - You need to be using SuperStream no later than 31 October 2015.
What do you need to do?
To be SuperStream compliant, you need to pay super electronically. There are three main options to do this including:-
- Using your default superannuation fund's online system. Most superannuation funds offer an online system where you can enter employee's contributions for both that fund and other choice funds that your employees may have. It should be noted however that some funds do charge a fee for this service.
- Using a super clearing house, such as the ATO's Small Business Superannuation Clearing House (SBSCH). The ATO SBSCH is a free service but this service is limited to employers that meet the small business criteria (being fewer than 19 employees and a turnover of less than $2 million).
- Using your payroll system. Accounting software systems like Xero and MYOB offer a SuperStream compliant option. Depending on your software, this service may be included in your monthly subscription or at an additional charge. You may also need to upgrade your software if using older desktop versions.
You'll also need to collect certain information from your employees if you don't have it already. The employees will need to provide you with the Fund ABN, and a Unique Superannuation Fund Identifier (USI). This information should be easily found on their latest super statement.
If your employee has a self managed superannuation fund, they will also need to provide the fund's bank account details and a fund electronic service address.
Once you have this information enter it into your system and you're ready to start using SuperStream.
For any further information or assistance, please contact us.