How will SuperStream benefit Employers
These changes have a range of potential benefits for employers, including:
- the opportunity to use a single channel when dealing with super funds, regardless of how many funds your employees contribute to
- less time spent dealing with employee data issues and fund queries
- greater automation and reduced cost of processing contributions and payments
- more timely flow of information and money in meeting your superannuation obligations
UPDATE: 1 JULY 2015 When do I have to start using SuperStream?
20 or more employees: must be compliant by 30 June 2015
Philip Hind, ATO’s National Program Manager, Data Standards & E-Commerce (SuperStream) said the ATO will extend its compliance flexibility to employers who are not yet SuperStream-ready by four months until 31 October 2015.
19 or fewer employees:
SuperStream starts the 1 July 2015 and you have until 30 June 2016 to meet the SuperStream requirements when sending superannuation contributions on behalf of your employee. If you are ready you can begin now
What are my options for meeting SuperStream?
Every business is different, so there’s no ‘one size fits all’ approach to adopting SuperStream Employers have options for meeting SuperStream – either using software that conforms to SuperStream; or using a service provider who can meet SuperStream on your behalf. We recommend that you start investigating your options now. Your options may include:
- upgrading your payroll software
- using an outsourced payroll function or other service provider
- using a commercial clearing house or the free Small Business Superannuation Clearing House (if applicable).
- Your default fund may also have its own electronic channel that can be used during the transitional period up to 30 June 2016. This fund can provide you with details about how to comply with the SuperStream using their preferred facilities.
Changes to the Small Business Superannuation Clearing House
- Employers with fewer than 19 employees can make use of the Small Business Clearing House as their SuperStream solution.
- From 1 July 2015, all businesses with an annual turnover below the small business entity turnover threshold, currently set at $2 million, will be eligible to access Small Business Superannuation Clearing House (SBSCH).
- ATO requires ‘employee privacy notification’ to use the Small Business Superannuation Clearing House refer to the ATO website
SuperStream Requirements 1) Does the SuperStream Payment have to happen at the same time as the Message is sent?
The Superstream regulations require the message related to the payment of a SuperStream amount to happen in the SAME DAY.
2) Can I send the message when I finish the quarter and the business pay on the 28th?
NO: the Regulations require the payment to be processed on the same day as the message.
Compliance Does Not Mean it is a Tax Deduction
Under SuperStream, all employers are encouraged to use a clearing house (the SBSCH or a commercial clearing house or a default super fund provided clearing house). We agree that a clearing house is the efficient way to manage the payments of SGC. However the employer doesn’t get a tax deduction unless the payment is received by the respective superfunds by the 28th. So the employer must pay the clearing house in time for the clearing house to then pay the superfund by the 28th.We will be revisiting SuperStream throughout 2015-2016 to keep all relevant information updated.
