"SuperStream – Another nail in the coffin of the cheque book" Article by Tina Zawila

Employers, you may have missed it, (with all the other changes that occurred on 1 July 2014 such as an increase in tax rates due to the Medicare Levy increase, and increased Superannuation Guarantee Contributions), but “SuperStream” also came into effect on 1 July 2014.

What’s SuperStream I hear you ask?

It is yet another government reform aimed at improving the efficiency of the superannuation system.  Under SuperStream employers must make super contributions on behalf of their employees by submitting data and payments electronically in accordance with the SuperStream standard.   All superannuation funds, including Self Managed Superannuation Funds, must receive contributions electronically in accordance with this standard. 

This means no more cheques and paper remittance advices to super funds!

Although the ATO is being flexible with the implementation of this initiative, employers with 20 or more employees are obliged to start using the SuperStream standard from 1 July 2014.  For employers with 19 or fewer employees, you have until 1 July 2015 to adopt SuperStream.

Employers have two options for meeting SuperStream; either:

a)      Use software the conforms to SuperStream, or

b)      Use a service provider who can meet SuperStream on their behalf.

If you do employ more than 20 employees, you should investigate your options as soon as possible.  Transitional rules recently introduced will allow you (between 1 July 2014 and 2 November 2014) to send super contribution messages to a fund without strictly conforming to the SuperStream standard provided the super fund will accept the format. 

Time is ticking…at Sothertons Gladstone we can assist employers in understanding their obligations regarding SuperStream and other taxation and employment matters.  We can also help you with software options to make things easier for you.  Call us today on 07 4972 1300 if you need more information or assistance to ensure your meet the SuperStream requirements.