What is “SuperStream?”
“SuperStream” is a new set of requirements governing the flow of information and payments to Super Fund; it is aimed at improving the efficiency of reporting and payment of employee superannuation in Australia.
Under “SuperStream,” super contributions will need to be made by submitting data and payments electronically in a consistent and simplified manner. The obligation is for Super Funds to accept it and for employers (and/or providers handling super) to ensure it is sent electronically. The previous option to send a list of contributions and a cheque to the Super Funds will not be permitted.
There are now requirements in relation to Self Managed Super Funds (SMSF). Previously a BSB and Account Number were enough to be compliant. As of the 1st July 2015 it is necessary for employees with SMSF to provide the funds ABN and Electronic Service Address (ESA).
All employers with 20 or more employees need to be fully “SuperStream” compliant by the 30th June 2015. Employers with fewer than 20 employees have until the 30th June 2016 to become compliant.
Celergo would like to take this opportunity to outline so Superannuation Reminders:
What are the Superannuation Requirements?
Australian Federal law provides the choice of superannuation to certain employees. These laws require employers to provide unlimited choice of superannuation funds to employees unless they receive contributions in accordance with the requirements of any of the following:
• An Australian workplace agreement or collective/enterprise agreement;
• Unfunded public sector arrangements, i.e. government schemes; or
• Certain defined benefits funds.
How do employees choose?
New Hire Employees need to complete a Standard Choice Form. The form can be downloaded from the Tax Office website. Instructions for completing the form and further guidance are available Australian Taxation Office.
What does the employee need to provide?
The employee will need to provide written details of the fund chosen and information on how contributions are to be made. They have to provide a written statement from the fund that it is a complying fund, or in the case of self-managed funds, a statement from the ATO confirming this.
When do employees choose?
Eligible employees must be given the form within 28 days of hire.
Can any Super Fund be nominated?
The employee can nominate any Superannuation Fund (or retirement savings account) providing it is a complying fund.
An employer does not have to accept an employee’s choice if the fund requires the employer to become a “participating employer.”
What time is available for compliance?
Once an employee provides the employer with a completed Form, it must comply with that choice within two months.