12 Jul SuperStream
Some of you may have heard of SuperStream, others may be wondering what it is?
Basically the ATO are looking to simplify how employers make superannuation contributions for their employees while saving time and reducing costs.
So what is SuperStream?
SuperStream is a government reform aimed at improving the efficiency of the superannuation system. Employers are going to be required to make super contributions on behalf of their employees by electronically submitting the super data and payments.
How will SuperStream benefit employers?
Employers will be able to submit the data and payments in a consistent and simplified manner, the benefits include:
- They only have to use a single channel when dealing with super funds regardless of how many funds the employee contribute to
- Saves time
- Great automation and reduced costs of processing contributions and payments
Who has to use it?
SuperStream is mandatory for all employers making superannuation contributions, APRA- regulated super funds and SMSF receiving contributions.
When do you have to start using SuperStream?
20 or more employees – Businesses that have 20 or more employees must have started implementing the SuperStream from the 1st July 2014 and have until 30th June 2015 to met the requirements when sending super contributions on behalf of employees.
19 or fewer employees – Businesses with less than 19 employees must have started implementing the SuperStream from the 1st July 2015 and have until 30th June 2016 to met the requirements when sending super contributions on behalf of employees.
What are the options available for meeting SuperStream?
The ATO has introduced the Small Business Superannuation Clearing House website which is a free, optional service for employers with 19 or fewer employees, and with an annual aggregated turnover or less than $2 million. This website allows you to make your superannuation guarantee contributions as a single electronic payment to the clearing house, which then distributes the payments to the employees super funds.
For those businesses employing more than 19 employees, you may need to seek the services of your businesses default super fund to provide the clearing house superannuation services. To find a default industry super fund provider click here.