Are You SuperStream Compliant?

Posted by on Aug 10, 2016 in Blog

Are You SuperStream Compliant?

Do you have employees? Then your business needs to be SuperStream compliant. SuperStream is the way businesses must pay employee superannuation contributions to super funds. It standardises the way employers make super contributions.

As of 1 July 2016 the new legislation came into effect, and if you aren’t compliant, the Australian Tax Office (ATO) can take action including issuing penalty notices of up to ten penalty units, or $1,800.

The ATO says “SuperStream transmits money and information consistently across the super system – between employers, funds, service providers and the ATO. The data is linked to the payment by a unique payment reference number.”

“This means:

  • employers can make all their contributions in a single transaction, even if they’re going to multiple super funds
  • contributions and rollovers can be processed faster, more efficiently and with fewer errors
  • people can be more reliably linked to their super, reducing lost accounts and unclaimed monies.”

So what do you need to do so that you are compliant?

You may already be paying the super contributions electronically, so you may only need to make some small adjustments so the data is being sent in the new format.

There are three ways you can use to transfer the payments:

  • Your payroll system (if it meets the SuperStream standards)
  • Your Super Fund’s online system
  • A Super Clearing House

Using your Payroll System

Make sure you have all the information you need from your employees:

  • Employee tax file number
  • The fund’s ABN
  • The fund’s unique superannuation identifier (USI).

If your employee has a self-managed super fund, you will need to gather these details:

  • Employee tax file number
  • The fund’s ABN
  • The fund’s bank account details
  • The fund’s electronic service address.

Xero is SuperStream compliant. However, if you use a different system you may need to check that it meets the SuperStream requirements.

Your Superfund’s Online System

Your super fund may have an online system in place which you can use.

A Super Clearing House

A super clearing house pays the super contributions into your employees’ funds for you. The beauty of a clearing house for you, as the employer, is that you only have to make one single electronic payment and submit the contribution data for all your employees. The clearing house manages the rest.

If you have 19 or fewer employees, or a turnover of less than $2 million a year, you can use the ATO free Small Business Super Clearing House. For larger organisations, check with your current super fund who may be able to offer a clearing house for you to use.

The ATO has put together an employer checklist to help you ensure you have everything covered.

If you would like help using Xero, give us a call. We can make sure it is set up correctly to guarantee compliance.