Are You SuperStream Ready?
What is SuperStream?
SuperStream is a new way for employers to make super contributions electronically rather than do everything manually.
It's a government initiative that will improve the processing of superannuation, making things simpler and quicker for most employers. Under SuperStream, the exchange of information between super funds and employers is done electronically via a clearing house of your choice.
Why is SuperStream being introduced?
Since employees could choose which super fund they contributed to, employers have faced a growing administrative burden of processing employee contributions to numerous funds in different formats. SuperStream removes many of the complexities employers currently face.
What are the benefits of SuperStream?
Under SuperStream, employers have a simpler and more consistent way of making contributions, especially those employers who pay contributions to numerous super funds. There are potential time and cost savings because there is a single channel for making contributions.
Does SuperStream apply to me?
SuperStream is compulsory for all employers who make super contributions on behalf of their employees.
When does SuperStream start?
If employers have 20 or more employees, SuperStream started from 1 July 2014. From that date, employers must be implementing SuperStream and had until 30 June 2015 to meet the requirements. The ATO has provided flexibility until 31 October 2015 for these employers to get ready.
If employers have 19 or fewer employees, SuperStream starts from 1 July 2015. Employershave until 30 June 2016 to get ready for SuperStream.
What changes do I have to make?
Every business is different, so there is no ‘one size fits all’ approach to get ready for SuperStream. You have options. For most employers, SuperStream involves:ensuring your payroll solution is compliant, working with your default super fund, using a clearing house. If you are using XERO for your payroll, superstream can be easily set up wihin the program easily and efficently, without the need for using an extrenal clearing house. If you need assistance setting this up, we can help you.
Otherwsie, employers can register to use the free Small Business Superannuation Clearing House – those with 19 or fewer employees or aggregated turnover of less than $2 million a year.
Are contributions to SMSFs covered by SuperStream?
SuperStream is compulsory for all employers who make super contributions on behalf of their employees to SMSF’s. To make SuperStream contributions to SMSFs, employers need to know the ABN and an active electronic service address (ESA) for the SMSF. To make the actual payment of money, they need to know the SMSF’s bank account and BSB too. This means if you have a SMSF, you must register for SuperStream.
Does SuperStream apply to your SMSF?
Contributions sent to an SMSF from a related-party employer are exempt from SuperStream and can be made using existing processes. For example: if you are an employee of your family business and your super guarantee contributions go to your self-managed super fund, you can continue contributing using current methods and do NOT have to register for SuperStream.
If however, you receive contributions into your SMSF from a non-related employer, then your SMSF must register for SuperStream.
What is an USI?
A unique superannuation identifier – or USI – identifies the specific superannuation product for an employee contribution. It helps ensure contributions get to the right destination. All super funds must have at least one USI.
Most super funds have one USI for all of their products. It is publicly available information. The USI and other identifying information for the fund (like the ABN) are generally available on funds’ websites. Some funds have more than one USI. It is important that your employee tells you which product they are in.
What is an ESA?
An electronic service address – or ESA – identifies where information about contributions to self-managed super funds need to be sent. An employee with an SMSF must provide you with an ESA for you to be able to send data to the messaging provider on behalf of their SMSF. Your employees can register for an 'active' ESA from a SMSF messaging provider or through their SMSF administrator, tax agent, accountant or bank. An e-mail address is not considered to be an active electronic service address
Need more help?
In summary, if you're an ambitious business owner looking to boost your current results or if you're looking to get your business off to a flying start we invite you to contact us today. You can expect practical business, tax, marketing and financial advice that could have a profound effect on your future business profits. To book your FREE, one hour introductory consultation simply call us on (03) 9326 1244 or complete your details in the box at the top of this page and we will be in touch.
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