It’s a big change for business and it’s set to save you a bucket-load of time, SuperStream begins rolling out across Australia from today. Aimed at improving efficiency within business, SuperStream will mean all superannuation payments will soon be made electronically.
The new method for making payments is mandatory for employers, APRA-regulated funds and SMSF’s. However, the timeline for meeting this requirement varies. I’ve answered some common questions about SuperStream, Reckon software and new terminology being used in this blog post (if you have more questions post them in the comments section below).
1. Does my business need to be SuperStream compliant on 1 July 2014?
Although the ATO has been telling everyone to be SuperStream-ready from 1 July 2014, this only affects a small number of selected super funds and employers. If this includes you, you should know about it – it’s likely you would have already been notified by the ATO or by a super fund.
Over the next 2 years the ATO will roll-out SuperStream in multiple stages. Current advice from the ATO is that:
- If you employ 20 or more employees, then you should plan to be ready to submit via the SuperStream method by 30 June 2015,
- If you employ 19 or less employees then you should plan to be ready to submit via the SuperStream method by 30 June 2016; and
- If you currently pay any contributions with a cheque, you will not be able to do this by 30 June 2015. You will need to make arrangements to pay all contributions electronically by then.
2. How can I get ready for SuperStream?
SuperStream requires you to collect additional information to make contributions and payments. Some key things you’ll need to have, once your accounting software has been updated, include:
- The Unique Superannuation Identifier (USI) code for funds you make contributions to. When you next contact all the regulated funds that you make contributions to for your employees ask for their USI code, this code will replace the current SPIN code;
- The Electronic Service Address (ESA) for Self-Managed-Super-Funds (SMSF’s). If you make contributions to SMSF’s on behalf of your employees, contact the administrator or ask the employee for the SMSF’s ESA for contributions. This is only for SMSF’s and will usually be a web address for the service used to submit contributions to; and
- The SMSF details. Check you have the correct SMSF name, ABN and bank account details.
For your employees check that records are up to date, including:
- Full name and proper spelling,
- Street address,
- date of birth,
- Tax File Number (TFN),
- Super fund member number.
3. When do I update my accounting software?
Accounting software will need to be updated by the time you’re required to comply with Superstream. Essentially accounting software will be updated to include additional fields you’ll need to capture all the necessary information.
- For Reckon Payroll Premier users – the latest release of the program already includes changes to help you collect the right information and submit via the new standard! Before updating to this version, make sure you’ve completed all your contributions and pay runs for the end of the 2013/14 financial year. We’ve partnered with NAB to create the bridge between your business and the super funds used by your employees – if you’re looking to get setup right away get in touch with us.
- For Reckon Accounts business software users – you can expect an optional program update to be made available later this year that includes necessary changes to help you collect the right information and submit via the new standard, these changes will also be included in Reckon Accounts 2015.
4. Where can I found more information about the SuperStream changes?
The ATO website has some information to help you understand SuperStream.
You can also read the factsheet on SuperStream we prepared earlier this year here >
This post is intended to provide general guidance only, you should seek out professional advice for your specific circumstances.