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SuperStream and SMSFs – Are You Ready For Electronic Contributions?

Article By Adam Hurwood | | Accounting & Tax
SuperStream is a government reform aimed at improving the efficiency of the superannuation system. Under SuperStream, employers must make super contributions on behalf of their employees by submitting data and payments electronically, in accordance with the SuperStream standard. All superannuation funds, including Self Managed Superannuation Funds (SMSFs), must be set up to receive those contributions electronically as per the standard.

SMSF members who receive employer contribution payments from an employer with 20 or more employees should have had a discussion with their employer about when contributions will be sent using SuperStream. Members will have to sign up with an SMSF messaging provider to obtain an electronic service address (also known as an alias) for the receipt of contributions data messages.

To be able to receive electronic contributions, members of an SMSF must provide the following information to their employers:

The SMSF’s –
• Australian Business Number (ABN)
• Bank BSB and Account Number for receipt of contribution payments
• Electronic Service Address (alias) for receipt of the contribution message.

If you haven’t taken these steps yet – it isn’t too late, but now is the time to finalise your preparations. Sign up for an electronic service address and speak to your employer about when they plan to send electronic contributions using SuperStream.

Remember, this is a big change for your employer as they are likely to be dealing with many super funds. In order to help them with their preparations make sure your SMSF is ready to comply with the new SuperStream requirements before they start sending contributions electronically. Don’t leave it to the last minute and run the risk of not receiving contributions electronically.

Should you need any assistance in preparing your SMSF for SuperStream, please speak with one of our qualified Accountants who will be able to help.