The Australian Taxation Office (ATO) has warned medium to large employers (those with 20 or more employees) that they have until 30 June 2015 to comply with the SuperStream requirements. In a statement, the ATO has said “any employer who has not yet started to prepare needs to act now”.
SuperStream requires employers to make superannuation contributions on behalf of their employees by submitting data and payments electronically in a single transaction. Phillip Hind, the ATO’s National Program Manager, Data Standards & E-commerce (SuperStream), believes the implementation of SuperStream has seen employers saving time and costs with making superannuation contributions.
“We know that making multiple super contributions to multiple funds has been a time consuming and often complex process for employers or their staff. Some employers have cut processing times from several hours to minutes once they have put SuperStream in place.”
If employers have 19 or fewer employees (small employer), SuperStream starts from 1 July 2015 but they have until 30 June 2016 to meet the requirements.
SMSFs and SuperStream
If you are a trustee/member of a Self Managed Superannuation Fund (SMSF) and receiving contributions from an employer you will need to:
- Register your SMSF for an Electronic Service Address (ESA),
- Provide your SMSF’s ESA, ABN and bank account details to your employer
However, SMSFs are exempted from the SuperStream requirements where the contributing employer is a “related employer” i.e. you are a salaried employee or director of your own business. Self employed or personal contributions are also excluded.
SMSF trustees who fail to meet the SuperStream data standards may face a penalty of up to $3,400 and also have their superannuation contributions paid to their employer’s default fund.