SuperStream – Mandatory for Employers & Super Funds

Brisbane Business Accountant - Bonus Super

If you are an employer, or the trustee of a Self-Managed Super Fund, you may be required to comply with the SuperStream standard by 1 July 2015. SuperStream will become mandatory for all employers making super contributions, and most self-managed superannuation funds (SMSFs) receiving contributions. Compliance will require taking action well in advance to make sure you’re ready. In fact, some SMSFs and employers have been required to exchange SuperStream data since 1 July 2014. If you are not compliant with SuperStream when required you may face penalties.

SuperStream is a government requirement. 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 SMSFs, must receive contributions electronically in accordance with this standard.

Employers

From 1 July 2014:

Employers with 20 or more employees were required to start using the SuperStream standard to send contribution data and payments electronically. They have till 1 July 2015 to complete their implementation.

All super funds (including SMSFs) must receive any employer contributions sent to their fund in accordance with the SuperStream standard.

From 1 July 2015, employers with 19 or fewer employees will also be required to send contributions data and payment electronically. However, some may choose to implement SuperStream sooner. They will have till 1 July 2016 to complete their implementation.

SMSFs

Contributions sent to an SMSF from a related-party employer are exempt from SuperStream and can be made using existing processes.

For all other contributions, your SMSF must be ready to receive SuperStream data and payments when employers sending contributions in this fashion make the transition. (ie: you need to comply with the employers’ timeframes.)

There are a range of options for meeting your SuperStream obligations. Each option involves providing contributing employers with:

  • your SMSF’s Australian Business Number (ABN)
  • your SMSF’s bank BSB and account number for receipt of contribution payments
  • an electronic service address for receipt of a contribution data message.

You will need to ensure your SMSF bank account is able to receive SuperStream-compliant electronic contribution payments and your SMSF can receive a contribution message with information about these payments in the SuperStream format.

To receive contribution messages electronically you will need to obtain an electronic service delivery address.

If you would like to know more about meeting your SuperStream obligations, contact Brisbane Business Accountant on 07 3822 7201.