The SuperStream standard is part of the federal government’s Super Reform package.
It has been set up to provide a consistent, reliable electronic method of transacting linked data and payments for superannuation.
With a lot of small business small to medium enterprises – including wineries – still managing their superannuation by cheque, paperwork and post the Australian Tax Office (AT0) says its goal is to improve the efficiency of the superannuation system.
By improving the timeliness of processing of rollovers and contributions and reducing the number of lost accounts and unclaimed monies.
ATO says SuperStream is the administration arm of the Federal Government’s Stronger Super reform package.
Its simplified superannuation administration process for employers, with common data standards for contributions across all funds and standard procedures for electronic payments, is expected to both save time and improve fund management.
Which means employers will now manage their super contribution files and transfer their super payments electronically.
SuperStream aims to improve the efficiency of Australia’s superannuation system and provides a new standard for employers when making super contributions.
It requires an employer to send contributions electronically in a standard format with linked data and payments.
SuperStream is a major change which brings significant benefits for employers and their employees.
It will simplify the super contribution experience for employers by reducing cost and effort while eliminating unnecessary variation in how contributions are made.
For employees, it will mean better protection of their retirement savings.
Employers with 20 or more employees
SuperStream contributions start from 1 July 2014 onwards so ATO says people should start preparing now.
ATO says the earlier you begin your implementation, the sooner you will see the benefits and the less chance you will face any compliance issues.
Make sure you contact your service provider to check their start dates and work out the best time to begin. ATO is promising flexibility on start dates, provided you and your business are doing your best to implement and have a firm plan to do so no later than 30 June 2015.
Small employers with 19 or fewer employees
The SuperStream standard applies from 1 July 2015.
ATO will also provide flexibility for you on your start-up date, provided you do your best to implement after this date and have a firm plan to do so no later than 30 June 2016. If you are ready earlier, there is no need to wait and you can start at a time that suits you. Penalties may apply where an employer fails to comply with SuperStream standards.
Further details are available from: https://www.ato.gov.au/Super/SuperStream/