With the end of the financial year fast approaching, it is timely for employers to consider the following questions to ensure they are prepared for the next phase of the Australian Taxation Office’s (ATO) SuperStream.
The SuperStream standard is part of the government’s Super Reform package aimed at providing a consistent, reliable electronic method of transacting linked data and payments for superannuation.
From 1 July 2014, employers with 20 or more employees are required to use the Data and Payment Standard (the standard) when making superannuation contributions.
SuperStream involves the electronic payment and processing of employee contributions using a standardised and simplified format. An employer can select the electronic method best suited to their business including payroll upgrade, clearing house, accounting or bureaux service. Some funds also have electronic channels which will provide SuperStream processing points.
Are any of your employer or Super Guarantee super contributions being paid to a Self Managed Superannuation Fund (SMSF) on behalf of yourself or an employee?
Do you employ 20 or more staff?
Is your payroll system SuperStream compliant?
SuperStream has been transmitting super contributions and relevant contribution data electronically to retail and industry superannuation funds for some time. However, from 1 July 2014, employers who employ 20 or more employees will be required to provide SMSFs with contributions and relevant contribution data electronically.
What you need to do?
If you employ 20 or more staff, it is likely that you are already complying with the requirements of SuperStream. To confirm whether the current version of your payroll software is SuperStream compliant, contact your payroll software provider.
- The name of their SMSF
- The fund’s ABN
- The fund’s electronic service address for SuperStream purposes
- The SMSFs bank account details including:
- The SMSFs bank account name
- BSB number
- Account number.
* Please note: Employers with 19 or fewer employees have another year before they need to request this information from employees.
End note: The ATO has recently confirmed its view that a contribution is not received by a super fund until the actual contribution amount is received into the fund’s bank account.
It may be prudent for you to allow at least seven working days for contributions to be processed through clearing houses and the banking system.
For example, this year 30 June falls on a Monday, so we suggest that final super contributions for the financial year are remitted from your (employer) bank account by no later than 20 June 2014.