All employers are required to introduce changes in the way they make super contributions. SuperStream is a government reform aimed at improving the efficiency of the superannuation system and is mandatory for all employers making super contributions. The new standard requires all super contributions to be made electronically with a link to the data.
Benefits & Purpose
The main aim of SuperStream is to ensure the employer contributions are paid in a consistent, timely and efficient manner. It will give employers the opportunity to use a single channel when dealing with super funds resulting in less time spent dealing with employee data issues and fund queries. Rather than employers making various payments to many employees’ super funds, they will now make one payment effectively through a clearing house. Employers can use their electronic payroll system to generate contributions as a single event and send them through a single electronic channel. This results in greater automation and reduces the time and cost of processing contributions and payments.
Small Employers (19 or less employees):
- SuperStream starts from 1 July 2015
- Businesses must complete their implementation by no later than 30 June 2016.
Large Employers (20 or more employees):
- SuperStream started from 1 July 2014 and implementation should now be complete (as at 30 June 2015)
- Commissioner of Taxation recently announced that large employers have until 31 October 2015 to be fully compliant.
Options for Employers:
- Upgrading your payroll software to conform with SuperStream
- Use a outsourced payroll function or other service provider
- Use a commercial clearing house or the free Small Business Superannuation Clearing House. By using the SBSCH you will ensure you are SuperStream compliant by 30 June 2016.
No implementation by required date
Flexibility and support will be given to employers making a genuine attempt to comply with their new obligations under SuperStream.
If no steps have been taken in meeting the obligations, employers could face ATO compliance action including penalties.
Whilst this change has been adopted strongly by large employers, small employers are yet to fully embraced it. Speak with your accountant to check what solutions they have to help your business get SuperStream ready today.