What is SuperStream?

What is SuperStream?

SuperStream is a government reform aimed at improving the efficiency of the superannuation system. Under SuperStream, employers must report super contributions on behalf of their employees by submitting data and payment details electronically in accordance with the SuperStream standard. All superannuation funds, including Self Managed Superannuation Funds (SMSFs), must receive contribution details electronically in accordance with this standard.

The main purpose of SuperStream is to ensure employer contributions are paid in a consistent, timely and efficient manner to a member’s account. The change removes many complexities employers currently face as a result of funds being able to set up different arrangements for accepting contributions (due to the lack of common standards).

Below is a brief summary of how this new change will affect employers and SMSFs.

HOW SUPERSTREAM AFFECTS EMPLOYERS

From 1 July 2014, employers with 20 or more employees will be required to comply with minimum data standards and use electronic transfers when transacting with superannuation providers.

Employers with less than 20 employees will not be required to comply with data standards and use electronic transfers until 1 July 2015.

There is a two year transition period from 1 July 2014 to 30 June 2016 for employers to comply with SuperStream obligations.

What do I need to do to meet my SuperStream obligations?

Employers have the following options for meeting SuperStream:

• using software that conforms to SuperStream (e.g. latest versions of MYOB with M-Power Superannuation and Reckon Accounts); or
• using an outsourced payroll company or other service provider who can meet SuperStream on your behalf; or
• using a commercial clearing house or the free Small Business Superannuation Clearing House administered by the ATO (only for 19 or fewer employees);

Your default Retail or Industry fund may also have its own electronic method that can be used during the transitional period up to 30 June 2016. These funds can provide you with details about how to comply with the SuperStream using their preferred facilities.

Employers (with 20 or more employees) must obtain the following information from their employees before 31 May 2014 to ensure the new system operates smoothly from 1 July 2014.

• Fund’s ABN
• Fund’s Name
• Fund’s bank details for direct debit
• Fund’s Electronic Service Address (ESA code)

[Note: if you have a SMSF that is managed by Blackburn Lazer, then the ESA code is AUSPOSTSMSF]

For most employers, the only additional information required from the employees is their superannuation provider’s “Electronic Service Address”, the ESA code.

HOW SUPERSTREAM AFFECTS SMSFS

From 1 July 2014, SMSFs will need to be ready to accept employer contributions on behalf of members in a manner that complies with the new SuperStream Data and Payment Standard.

Trustees of a SMSF that receive employer (employer with 20 or more employees) contributions will need an Electronic Service Address (ESA) and software to manage the SuperStream message data.

Employees must provide the following information to their employer before 31 May 2014 to ensure the new system operates smoothly from 1 July 2014.

• Fund’s ABN
• Fund’s Name
• Fund’s bank details for direct debit
• Fund’s Electronic Service Address – Essentially a “CODE”

[Note: if you have a SMSF that is administered by Blackburn Lazer, then the ESA code is AUSPOSTSMSF]

What do I need to do if I have a SMSF?

• If your current employer is already paying your employer contributions (electronically) to your superannuation fund, then the only additional information you need to provide to your employer is the ESA Code, as your employer will already have the necessary information about your Fund.
• If you have a Self-managed Superannuation Fund and managed by Blackburn Lazer, the ESA code for your SMSF is “AUSPOSTSMSF”.
• If your superannuation is with an Industry Fund, a Retail Fund or a Self-Managed Superannuation Fund which is not managed by Blackburn Lazer, you will need to contact the superannuation provider to obtain the ESA code.

SuperStream rules do not apply to a SMSF from 1 July 2014, if the employer of the member has less than 20 employees. However, this new system will apply to a SMSF from 1 July 2015 regardless of how many employees the employer has. This new system doesn’t apply if the SMSF only receives member contributions, spouse contributions, spouse splitting contributions, or an employer contribution from a related employer.