SuperStream is Coming …
What is SuperStream?
Have you heard about SuperStream? If you employ 20 or more employees, now is the time to get familiar with SuperStream. From 1st July 2015, employers with 20 or more employees can use the new Superannuation Data and Payment Standard when making superannuation contributions. The standard offers a simpler way of making super contributions and, for many employers, will provide a single channel for making contributions to multiple super funds.
Under the standard, employers will need to:
- Send all super data electronically (such as the employee’s details and the amount of super being paid)
- Make contribution payments electronically
- Link data and payments with a unique payment reference number
- Send data and payments on the same day.
Some options to help you meet the standard include:
- Upgrading your software so that it complies with the standard
- Engaging a service provider who can meet the standard on your behalf
- Getting advice from your super fund on how your business can meet the standard.
To help you understand the standard, the Australian Taxation Office is sending important information about the standard to all employers with 20 ore more employees. Watch out for this letter in the mail.
You can find out more about the Data and Payment Standard on the ATO website here.
From 1 July 2016 all employers need to use this system.
This is a good thing
We are a strong believer in business efficiency. Accordingly, giving business the ability to comply with all superannuation obligations quickly and easily and make payments from within normal business software is a great step forward.
What does it mean?
- From within your payroll system you state which super fund needs to be paid for which employees.
- Your system keeps track of the amounts.
- When payments are due the software should create the payment instruction to the superannuation clearing house(s) and send the money to that clearing house.
- The superannuation clearing house takes the bulk instruction from you, separates the information and the payment into the respective funds and sends it on (i.e. push button, SGC obligations met).
Who does it?
- The government superannuation clearing house has been available for small business (less than 20 employees) for some time. This is now administered by the ATO. This was a great first step towards this system but it is not an automatic process and in fact you need to duplicate your data by having all your relevant employee information in the system. This system continues for the time being.
- MYOB have had the M-Powered Superannuation in place for many years. As of July 2014 MYOB released their SuperStream Compliance payment system, working in conjunction with their payroll. MYOB have recently released the update to their products.
- Xero have “auto super” which does the same process and uses clearing house “Clicksuper”. Xero have recently advised “with the new Business Edition subscription bundles, we used this opportunity to embed auto-super payments across all Premium plans. This feature was previously only available in large subscriptions.” Watch a demonstration here.
- Reckon provide guidance to compliance with SuperStream in their products. Refer to their information here.