SuperStream is part of the Australian Government’s initiative to reform the superannuation industry by providing a consistent, reliable electronic method of transactions, linked data and payments for superannuation.
What are the benefits
- Improving timeliness of processing of rollovers and contributions
- Reducing data and payment errors
- Improving electronic record keeping for tax and audit purposes
- Enhancing efficiency of the superannuation system
- From 1 July 2014, all super funds, including SMSFs, must receive contributions from medium and large employers (20 or more employees) in the data and e-commerce standard.
- From 1 July 2015, all SMSFs must receive contributions from small employers (less than 20 employees) in the standard format.
How does this affect SMSFs
In order to comply, each member of a SMSF will have to register for an electronic service address by 31 May 2014 and provide this address to their employer along with the details of their bank account and ABN. This will enable employers to notify employees on payment of contributions.
Trustees of SMSFs will need to ensure they can receive these electronic messages and payments in the SuperStream format by 1 July 2014. This may mean receiving these through your administrator, upgrading your financial accounting software with your provider or subscribing to a message delivery service.
One of the providers of the message delivery service is Australia Post and the details for the gateway service can be accessed via this link: https://auspost.com.au/business-solutions/self-managed-super-fund.html.
There is an exemption when contributions are made from a related-party employer. The employer will be exempt from sending the data message and the SMSF will be exempt from receiving it.
At the time of writing this blog, the ATO confirmed to us it is currently finalising the list for SMSF electronic messaging service providers and hope to have this published in the next couple of weeks. The update can be monitored on the following ATO website: https://www.ato.gov.au/Super/Data-standards/In-detail/Contributions/SMSF-messaging-service-providers/