, Wednesday, May 21, 2014
SuperStream is a new Government reform to simplify the superannuation system and make the payment and reporting of super contributions more efficient. Under the SuperStream reform super contributions MUST be made electronically and pass through the SuperStream Network.
The Cooper review defines SuperStream as “…a package of measures designed to bring the back office of superannuation into the 21st century. Its key components are the increased use of technology, uniform data standards, use of the tax file number as a key identifier and the straight through processing of superannuation transactions.”
What does that mean for employers?
SuperStream will set a standard for minimum data reporting and payment transmission requirements. Employers will have to use an online solution to make super payments and Super Funds will have to receive contributions via an online solution. There will be a minimum set of standards for data sent and tax file numbers will be the primary identifier for super fund accounts.
Xero makes the SuperStream transition for employers easy!
As of last year Xero included the “Auto Super Payment Feature” as part of all of their business edition bundles. You can check out a video on how Xero makes super payments easy here.
What does this mean for SMSFs?
For SMSF’s to comply with the standard, every SMSF that receives employer contributions will need an electronic service address (ESA) and the software to receive their SuperStream data. Trustees will need to provide this address to their employer in order to receive their contributions. So if you are a Trustee of an SMSF talk to your accountant to get yourself registered
When does this all Happen?
It’s happening now! If you are an employer and have 20 or more employees your SuperStream obligations start from 1 July 2014 and will need to be fully implemented by 30 June 2015. Employers that employ less than 20 people will have until 30 June 2016. For Trustees of SMSFs, it will depend on your situation, however, you can’t be ready too soon so speak to your accountant today!
Whether you’re an employer or trustee of an SMSF, give our team a call TODAY on 1300 098 852 to discuss the online SuperStream solutions available to you and be SuperStream ready!