WHAT IS SUPERSTREAM?
The Government has introduced changes to the way that employers can pay superannuation on behalf of their employees and contractors. Whereas payments before could simply be made by cheque or by electronic payment, all payments must now be made electronically along with the relevant data the fund requires to identify the member the contribution relates to.
Why are they doing this?
- Speed up processing times for super funds
- Reduction of administration costs for super funds and employers
- Better availability of information for super fund members
What gets sent to the super fund?
- Cash contribution sent electronically, and
- Details of the payment transaction, such as employee name, TFN, and Super fund member number.
How do I do this?
- Upgrade your software to ensure it is compliant (e.g. Xero is compliant if you have the Premium 10 or higher package), or
- Engage a payroll provider who is compliant, or
- Use the ATO’s small business superannuation clearing house (if you’re eligible)
When do I have to do this?
- Employ 20 or more people? You have until 31 October 2015 to be fully compliant with the SuperStream system,
- Employ 19 or less people? You have until 30 June 2016 to be fully compliant with the SuperStream system
Many employers won’t actually have to do anything as they will already utilise systems that are SuperStream compliant. For everyone else, it’s advisable to get compliant sooner rather than later.
As always, if you have any questions, please speak with your accountant. Alternatively, more information is available here. Please note this is an old Moneypenny post from last year, but we felt it a good time to re-post as the due date for compliance for some employers is looming large.