Are you ready for the Super Stream deadline?
With the Super Stream standards set to become enforced by the ATO from 30 June 2016 for all businesses, now is the time to ensure that your business is ready for the new changes being enforced. For employers transitioning to the new electronic superannuation contributions reporting we have summarised your responsibilities below.
Overview of the Super Stream changes
Super Stream was introduced by the Federal Government as a part of the Stronger Super reforms. The new standard requires employers to pay and report contributions to Superannuation Funds electronically. All employers will be required to be compliant by 30 June 2016.
When do they take effect?
The reforms were introduced in two stages. On 31 October 2015, employers with 20 or more employees were required to use the new standards. This year, these standards will apply for all businesses with 19 or fewer employees prior to 30 June, 2016.
While the new changes come into effect on 30 June 2016, we recommend making your first SuperStream payment no later than April 2016. This will give you time to make several payments and ensure your system is running smoothly before the 30 June 2016 deadline.
Starting sooner also means you can enjoy the benefits sooner.
It may take time to collect the information and get used to the new system. If any information is incomplete or incorrect, the super payment is likely to be rejected.
It’s still up to you to meet your super guarantee obligations by the due dates.
The benefits of Super Stream
Under SuperStream, employers have a simpler and more consistent way of making contributions.
Because the data is sent electronically in a standardised format:
- You can use a single channel for making contributions to multiple funds
- You’ll spend less time dealing with employee data issues and fund queries
- The information and money you send can flow more quickly to the super funds.
What do I need to do?
Firstly, employers will need to select a provider who will be able to assist with the delivery of this electronic reporting and payment service. Providers need to meet strict requirements administered by the ATO and must be on the list of approved providers.
After ensuring your payroll system is on the approved providers list you will need to collect additional information from your existing employees including:
- Employees’ Tax File Number
- Superannuation fund ABN
- A Unique Superannuation Identifier (USI) (APRA regulated funds only)
For employees who have nominated a SMSF for their contributions, they will also need to provide the following:
- SMSF’s Bank Account details
- SMSF’s Electronic Service Address (ESA).
The ATO have also updated their Super Choice form to include collection of the extra information required. You can download this document here. If you any questions on how Super Stream will change the way you make super contributions for your employees, please contact us at firstname.lastname@example.org