SuperStream is a new initiative introduced by the Australian Taxation Office (ATO) designed to standardise processing of superannuation data and payments electronically, allowing the process of employers paying superannuation entitlements to employees more streamlined.
This means that employers can make all employee superannuation entitlement contributions in a single transaction, even if they’re going to multiple superannuation funds. This includes self-managed super funds (SMSF’s).
Cheques and paper remittances will no longer be accepted. And if you are a business with fewer than 20 employees you MUST be compliant by 1 July 2016. The compliance deadline for businesses with over 20 employees was 1 July 2015.
As a small business (with fewer than 20 employees) you will be entitled to use the ATO’s Small Business Super Clearing House (SBSCH) for free. This allows you as an employer to pay all employee super contributions in one transaction, to one location. The advantage of this is that small businesses no longer need to make individual payments to every super fund that their employees may belong too, including SMSFs.
As an employer, to use the ATO’s Small Business Super Clearing House you simply:
- Register all your employee’s superannuation fund particulars with the SBSCH, including those of SMSF’s.
- Process one electronic payment to the clearing house for the total of ALL employee super contributions for the selected period.
- Then SBSCH will distribute super contributions to the employee super funds as per the instructions.
Some superannuation funds may also have a clearing house that you may be eligible to use.
To ensure you are compliant with SuperStream by 1 July 2016 you will need to have to pay super contributions for your employees electronically and send the associated data electronically. The data is in a standard format so that it can be transmitted consistently across the super system – between employers, funds, service providers and the ATO. It’s linked to the payment by a unique payment reference number. We recommend using a payroll software system that conforms with SuperStream, or be using a service provider that can meet the requirements of SuperStream on your behalf.
As an employer you may need to collect extra information from your employees over and above the information you already have. Employees can usually find this information on a fund statement or by calling their fund manager.
You will need to ensure you have the following information from the relevant superannuation funds:
- The unique superannuation identifier for APRA-regulated funds
- The ABN of the fund
- For SMSF’s – bank account details
- Electronic service address (SMSF)
- The employees tax file number
If you are unsure if your business is compliant, or how you can ensure you are, give us a call – we are only too happy to help you through the process.
“This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs”.