SuperStream for employers and Self Managed Super Funds
What is SuperStream and what does it require?
SuperStream, otherwise known as the Payments & Data Standards, is a requirement for all businesses to submit contribution payments and related information electronically in an approved format.The information that is required to be submitted includes:
- Employer details (the sender)
- Employee details
- Contribution types and amounts
- Payment details including a unique payment reference number
- Some employers may also choose to provide additional data.
Who has to comply with SuperStream?
The SuperStream regime will apply from 1 July 2015 for all employers. However, the ATO is providing flexibility on compliance dates as follows:
- Large and medium employers (20 or more employees) have until 31 October 2015 to be fully SuperStream-compliant;
- Small employers have to complete SuperStream implementation by no later than 30 June 2016.
Self Managed Superannuation Funds (‘SMSFs’) will find themselves on the other end of SuperStream measures – they need to be able to receive the contributions electronically as well as the associated information via a data file.
An exemption exists for SMSFs that receive contributions only from related party employers. However, where an SMSF receives contributions from both a related party employer and from a non-related party employer, then the SMSF will need to comply with SuperStream.
I’m an employer, how do I comply with SuperStream?
There are several options available to you:
1. Upgrade your payroll software to a product that accommodates SuperStream requirements.
- For example, MYOB has created a new feature called ‘Pay Super’ available in AccountRight (v2014.3 and later) to assist employers to comply with the new SuperStream measures. This feature is free as part of the AccountRight subscription. MYOB are also in the process of integrating a SuperStream service directly into MYOB Essentials products (formerly “Live Accounts”). We expect more details about the integration and pricing to become available soon.
- Xero has released the updated payroll function which includes its Auto Superannuation feature for their Premium 10, Premium 20 and Premium 50 plans that will allow users to meet their SuperStream obligations. You may need to upgrade your Xero plan to access the Auto Superannuation function and an online registration form will need to be lodged to activate it.
- Please contact your Ruddicks adviser for assistance to ensure that your accounting software package is SuperStream compliant.
2. Use a commercial clearing house or the free Small Business Clearing House (available through the ATO for employers with 19 or fewer employees). You can find further information regarding the free Small Business Clearing House here: http://www.ato.gov.au/sbsch. Please note that the use of a clearing house will add processing time between the sending of the contribution and the receipt of it by super funds. This additional time will need to be factored in when making contributions so that they are received by the fund within the prescribed 28 days following the end of a quarter.
3. Use an outsourced payroll service provider. This option could mean handing over much of the administration of your payroll including superannuation.
Please note that simply providing contribution data via email will not meet the SuperStream requirements.
I have an SMSF, how do I comply with SuperStream?
All super funds will have to receive all employer contributions in accordance with the SuperStream requirements.
TIP: Contributions sent to an SMSF from a related-party employer are exempt from SuperStream and can continue to be made under existing processes. However, the rules defining who is a related party are complicated – please contact us to discuss this if you think it may be relevant to you.
If your SMSF receives contributions from any non-related party employers, the fund has to:
- Inform the employer(s) making contributions of the SMSF’s ABN and bank account details (BSB and account number); and
- Provide the employer(s) with the fund’s electronic service address (‘ESA’) for receipt of a contribution data message.
The electronic service address can be obtained by registering the fund with a SMSF messaging provider, a register of which is maintained by the Tax Office.
Do I need to do anything if my SMSF is administered by Ruddicks?
The providers of our SMSF administration software have set up an electronic service address which our SMSF clients can use to comply with SuperStream. Accordingly, trustees of SMSFs administered by us do not need to obtain their own ESA. The ESA provided by our SMSF software provider is RECKONSMSF. If your SMSF is administered by us, you may provide this ESA to any employers who make contributions to your SMSF along with the fund’s ABN and bank account details to allow them to make SuperStream-compliant superannuation contributions.
We are hopeful that this will be the most efficient and cost effective solution for our SMSF clients.
Please contact your Ruddicks adviser if you have any questions regarding the implications of SuperStream measures for your business or for your SMSF or if you require any assistance with the transition to the new process
DISCLAIMER: The contents of this publication are general in nature and we accept no responsibility for persons acting on information contained herein. The content of this newsletter does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. © Ruddicks 2015