Oct 7, 2015

SuperStream – What is it and what do I need to do?

A guide for employers

SuperStream has been introduced by the Government to help improve efficiency in paying superannuation contributions and allows the government to data-match superannuation contributions at the time of payment. SuperStream simplifies the payment of superannuation contribution by allowing employers to make one payment to the clearing house for all their employees’ superannuation entitlements and the clearing house will then disburse the funds to all the employees’ respective superannuation funds. This will save a lot of time for employers where they are currently paying their employees superannuation entitlements to multiple superfunds.

SuperStream requires employers to register with a superannuation clearing house and enter the details of all their employees’ superannuation providers. Your accounting software such as Xero and MYOB may already have in-built capability that is already compliant with SuperStream and will allow you to make your superannuation payments through the software by linking the payment with the employee’s details in the payroll section of the software.

For employers with 20 or more employees you have to be SuperStream compliant by 31 October 2015. Employers with 19 or less employees have to be SuperStream compliant by 30 June 2016, however you can adopt SuperStream at any time before these dates.

Any employers who are making contributions to Self Managed Superannuation Funds (SMSF’s) need to make sure their SMSF has applied for an Electronic Service Address (ESA). An ESA informs the trustees of the SMSF when contributions are made to the fund and notifies the trustees by email when contributions are made on behalf of members. There are a number of ESA providers out there, our recommendation is to use ClickSuper which offers a free ESA to SMSF’s. Other ESA providers may charge a fee for providing the SMSF with an ESA.

For employers with 19 or less employees or any business which has turnover of less than $2m, the ATO provides a free superannuation clearing house service. If you have 20 or more employees or your turnover is greater than $2m you will need to find a Superannuation clearing house which is SuperStream compliant and have your superannuation payments made through the clearing house by the due date. We recommend you speak to the superannuation fund which you currently make the majority of your superannuation payments to as they should have an option available to use their SuperStream service.

If you have any questions about SuperStream or require any assistance with the implementation you can contact one of our accountants in North Sydney office.