- Employers will soon need to make super contributions to SMSF via SuperStream
- All funds, including SMSFs, need to be ready to receive the contributions as well as the associated data by electronic means that comply with the new standard
- Its important for all funds, SMSF trustees and employers to understand their obligations under this new standard which will apply from 1 July 2014
What is SuperStream?
SuperStream refers to the reforms aimed at enhancing the efficiency of superannuation transactions, improving the quality of data including rollovers and contributions.
From 1 July 2014, businesses with 20 or more employees will be required to start making superannuation contributions using SuperStream. Employers with less than 20 employees will need to make contributions under the standard from 1 July 2015.
To comply with the standard, all SMSF’s will need to obtain an Electronic Service Address before 1 July 2014 if they are receiving employer contributions from businesses affected by the change.
What do I do when my employer asks for my SuperStream details?
To be compliant, SMSF members will need to provide your employer with the following SMSF details:
- Australian Business Number (ABN)
- Bank account number
- Electronic service address (ESA) for receipt of contribution data message
- For all Redwood Advisory clients, we have registered you with SMSFDATAFLOW. You will receive a notification and will need to accept and add yourself on the system. We have chosen this provider as the service is free of charge.
When do I need to register?
For Trustees of SMSFs, it will depend on your situation. If your employer has 20 or more employees then you will need to provide the ESA and relevant details to them by the 31st May 2014 or your employer may send your contributions to their default fund. For employers with less than 20 employees you have till 30 June 2015.
The standard will also need to be adopted by employers. Employers who are required to make super guarantee payments for their employees will need to comply with the standard and will be required to adapt their payroll systems and processes to ensure they are able to make contributions in the required electronic format. Associated data to their employee’s superfund must also be transmitted in a format that complies with the new data and payments standard.
Its important that SMSF trustees and employers to understand their obligations under this new standard in order to be ready to receive contributions from 1 July 2014.