A Quick Guide To Preparing For Superstream Compliance
by Dominique Schuh
The SuperStream standard is part of the government's Super Reform package. The aim is that it will provide a consistent, reliable electronic method of transacting linked data and payments for superannuation. The goal is to improve the efficiency of the superannuation system, to improve the timeliness of processing of rollovers and contributions, and reduce the number of lost accounts and unclaimed monies.
This has implications for those people with Self Managed Super Funds, as any fund receiving contributions needs to have a "special identifying number." We are able to use commercial providers to obtain the special number for an SMSF, and for the time being we are using a free service for this. If you have any queries on this issue, please contact Natasha at our office and she will be able to assist you.
For Employers with more than 20 Employees:
If you fall into this category, hopefully by now you've started making superannuation contributions by using SuperStream. The Commissioner of Taxation recently announced that large and medium employers have until 31 October 2015 to be fully SuperStream-compliant.
For Employers with less than 20 Employees:
If you fall into this category, please feel free to start making contributions using the SuperStream system. If you call into this category you will have an additional 12 months to make the changes, but you'll be required to be fully using the system by 30 June 2016.
Superannuation Clearing house for Small Business
If you have less than $2 million in business turnover with less than 20 employees, you can make your compulsory employer contributions as a single electronic payment to the superannuation clearing house, which then distributes the payments to employees' funds. The clearing house is designed to reduce red tape and compliance costs for small businesses by streamlining the payment system as well as providing any required reporting.
If you register to use this service:
Your super guarantee contributions are counted as being paid on the date the clearing house accepts them (so long as the fund does not reject the payments).
You have 21 days to pass an employee's choice of fund on to the clearing house.
Registration is a simple process by visiting the ATO website, or please contact our office and we will assist you. Please also note that employer super contributions must always be made within 28 days after end of each quarter in order to avoid additional charges being imposed by the ATO and losing the tax deductibility of the payment. Please ensure your payments are always made on time.
If you have any questions or concerns about how these changes might affect your business, please play it safe and contact our office on 5482 2855 to speak to one of our professionals about your particular situation.