There has been much talk over the past months about Super Stream asking if you are ready. As a Sunshine Coast bookkeeper I have put together the following article which outlines these changes.
Businesses with 19 or fewer employees have been reminded that their superannuation payment arrangements will change from 1 July 2015 as a result of the introduction of SuperStream arrangements.
From 1 July 2015, small business employers with fewer than 19 employees will need to start making superannuation contributions electronically using the SuperStream standard. They will have until 30 June 2016 to meet the SuperStream requirements when sending superannuation contributions on behalf of their employees.
Medium or large businesses with 20 or more employees began making their superannuation payments using SuperStream from 1 July 2014. They have until 30 June 2015 to meet the SuperStream requirements
Businesses with fewer than 19 employees can meet the SuperStream requirements by making their contributions through the Government's Small Business Superannuation Clearing House (SBSCH).
The SBSCH is a free, online service for small businesses (with 19 or fewer employees), through which they can pay contributions to a number of superannuation funds as part of a single transaction.
The SuperStream standard is part of the government's Super Reform package. It is designed to provide a consistent, reliable electronic method of transacting linked data and payments for superannuation. Its goal is to improve the efficiency of the superannuation system, to improve the timeliness of processing of rollovers and contributions, and reduce the number of lost accounts and unclaimed monies.
Under SuperStream, employers must make superannuation contributions electronically. The contribution data is sent electronically in a message format to the fund, and the contribution payment is sent electronically through the banking system. The data message and payment are linked by a payment reference number, which enables reconciliation by the receiving fund.
Options for smaller employers who choose not to use the SBSCH and for larger employers not able to use it include:
• a software solution that conforms to SuperStream or
• a service provider who can arrange SuperStream compliance on your behalf.
Possible solutions include:
• upgrading payroll software
• using an outsourced payroll or other service provider
• using a commercial clearing house or,
• an employer's default superannuation fund may have an electronic channel they manage through which payments to other funds can be distributed.
Employers will need to collect and store additional information about funds in order to send them contributions in accordance with the SuperStream standard
Click below to view source
ATO: Preparing for SuperStream
business.gov.au: Do you have 19 or fewer employees
- See more at: http://aat.org.au/member-resources/news/item/422-superannuation-payment-changes-for-small-businesses.html#sthash.J14BSjdx.dpuf