SuperStream was announced by the government early 2014 and aims at improving the efficiency of the superannuation system. Employers must make super contributions on behalf of their employees by submitting data and payments electronically in a consistent and simplified manner.
SuperStream is compulsory for employers making super contributions, as well as self-managed superannuation funds (SMSF) receiving contributions. The aim of SuperStream is for employers to gain greater efficiencies and accuracy when meeting their super obligations, with potential benefits including:
· Ability to use one channel to make contributions on behalf of all employees, regardless of how many super funds are recorded
· Less time spent dealing with funds regarding the accuracy of employee details and data
· Automation of reporting and processing of contributions and payments
· More timely flow of information and money in meeting superannuation obligations.
Starting from 1 July 2015, the SuperStream measures are in effect for all businesses employing staff. For most small businesses employing 1 to 19 employees, they will have until 30 June 2016 to meet the SuperStream requirements when paying and reporting superannuation contributions. All other businesses employing 20 or more staff should have implemented SuperStream and be compliant as at 30 June 2015.
To be compliant for SuperStream, your options may include:
· Processing contributions through your payroll software
· Engaging an outsourced payroll function or similar service provider
· Utilising the free Small Business Superannuation Clearing House (19 or fewer employees)
If you are already submitting your data and payments electronically through your payroll software or clearing house, you won’t be required to make any changes.
Businesses and clients currently using Xero can also utilise the automated function within the software that enables automation of reporting and payment of superannuation contributions. Superannuation through Xero is powered by ClickSuper, who is an approved Xero partner and SuperStream compliant service provider. Set up is free and easy within Xero, and will allow employers to enjoy greater efficiencies and time savings.
Our highly trained and qualified payroll professionals are ready to assist if you should ever need help to set up your payroll system to become SuperStream compliant.