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Are You Ready For SuperStream?

Article By Adam Hurwood | | Accounting & Tax
SuperStream aims to improve the efficiency of Australia’s superannuation system and provides a new standard for employers when making super contributions. Employers are required to send contributions electronically with linked data and payments.

Employers with 20 or more employees

The ATO has issued a reminder that large and medium employers must be SuperStream compliant by 31 October 2015.

The ATO previously announced it would allow these employers (defined as those with 20 or more employees) an additional four months to adopt SuperStream, following the 30 June 2015 deadline.

With the extended deadline now rapidly approaching, the ATO says it will soon turn its attention to identifying those employers not compliant with SuperStream.

Penalties could apply for those who deliberately choose not to adopt SuperStream.

Small employers with 19 or fewer employees

The SuperStream standard applies from 1 July 2015. Small employers have up to 12 months to implement SuperStream and must be compliant no later than 30 June 2016.

You may wish to use the Small Business Superannuation Clearing House which is a free, optional service for employers with 19 or fewer employees, as well as those businesses with an annual aggregated turnover of less than $2 million.

Employers can make super guarantee contributions as a single electronic payment to the Clearing House, which then distributes the payments to employees’ funds. By using the Clearing House you will be compliant with the SuperStream requirements.

Self Managed Superannuation Funds (SMSFs)

SuperStream will not affect your SMSF if it:

• does not receive any employer contributions
• only receives personal contributions made by members
• only receives contributions from related-party employers

You must provide the following e-commerce details to your employer:

• your SMSF’s Australian business number (ABN)
• your SMSF’s bank account details for receipt of contribution payments (BSB and account number)
• an electronic service address (ESA) to receive messages containing contributions data

SMSF trustees are responsible for ensuring their employers have this information.

Should you require assistance with becoming SuperStream ready, please do not hesitate to contact your adviser.