The Australian Tax Office is urging employers to ensure they have the key details of their employees’ self-managed super funds by June 30, as a key deadline for businesses to implement the SuperStream scheme approaches.
SuperStream, a series of standardised forms and systems designed to increase efficiency within the superannuation sector, came about as a result of the Cooper review in 2010.
In May last year, the ATO announced the scheme has to be in place by June 30, 2015, for businesses with 20 or more employees and June 30, 2016, for employers with 19 staff or less
With the deadline for larger businesses rapidly approaching, ATO national program manager Philip Hind told SmartCompany it’s time for employers to check they have the details they need from their employees so they can finalise their SuperStream implementations.
“SuperStream is a new electronics way for contributions to be paid by employers, both to APRA funds and SMSFs,” Hind says.
“The new program covers how money and information details about contributions are passed on to funds.”
“To implement, employers have to upgrade their payroll systems and make sure their records are up-to-date. Meanwhile employees with SMSFs have to provide information to their employers to get ready.”
“It’s typical now for an employee who starts a new job to fill out the standard choice form. That includes the three key pieces of information they need to provide: the ABN of their SMSF, the bank account details of the SMSF, and its electronic service address.”
Hind notes the ATO maintains a register of SuperStream messaging providers that can provide SMSF-holders with an electronic service address, which is used to identify where contribution messages are to be sent.
“Our reminder is to SMSFs to be ready for the deadline on June 30, and any company with 20 or more employees will be required to implement SuperStream by June 30,” Hind says.
While small businesses with 19 employees or less have an extra year to implement SuperStream, businesses that upgrade early can benefit from a reduction in paperwork.
“There are some significant benefits in implementing SuperStream, including reduced time and effort, so we encourage businesses to do it ASAP,” Hind says.
“Many will find there will be natural events over the next year, such as upgrades to payroll systems or making changes to their bookkeeping service, when implementing SuperStream makes sense.”
“We’ve already seen many thousands of small businesses implement SuperStream, but … there are still many more that will need to do it in the next year.”