What is SuperStream?
SuperStream is a compulsory system of submitting the Superannuation Payment information for your business electronically. The information links the payment made by the employer to the employees account in the relevant superfunds.
The intention for this new process is that SuperStream will make the whole superannuation reporting and payment system much more efficient for Australian businesses that employ. It will also help keep track of those who do not meet the requirements for lodging and paying their Superannuation obligations on time.
How will SuperStream Benefit Employers?
There are great benefits for employers coming on-board to the SuperStream system, the benefits include:
- The opportunity to use a single lodgement process when dealing with super funds, regardless of how many funds your employees contribute to.
- Less time spent dealing with employee data issues and fund queries.
- The process will become automated which in turn will reduce time and expense for the processing of lodgements and payments.
- The automation will give business owners the ability to manage lodgements and payments easily to help assist with cash flow.
What are the Options for Meeting SuperStream Compliancy Requirements?
There are a few options for employers to look into to find the best fit for their business to ensure they are SuperStream compliant.
Options may include:
- Most of the mainstream accounting and payroll software providers have made it easy to be SuperStream compliant by updating their software to have a built in clearing house facility. If you are currently using any accounting or payroll software, a good option is to look into upgrading the software to take advantage of their new features.
- Some businesses outsources their payroll to a dedicated service provider, check to ensure they can also ensure you are compliant.
- You could look into a Commercial Clearing House.
- Using the free ATO Small Business Superannuation Clearing House (only for employers whose business has less than 20 employees)
- Your default fund may also be able to assist. Try contacting your default fund and ask if they can provide you with details about how to comply with the SuperStream using their preferred facilities.
Important Information for all Employers
- SuperStream is compulsory for all businesses that employee staff and have superannuation guarantee or any other type of superannuation obligations.
- Employers must report their superannuation obligations electronically via a clearing house.
- Ensure payments and data are linked by a unique payment reference number.
- Ensure data and payments are sent on the same day.
- Employers must respond to any requests from a super fund for missing information or queries relating to employee payments within 10 days.
- Funds will have to refund contributions within 20 working days if they cannot be allocated to an employee.
- It remains your responsibility as the employer to confirm that super contributions have been received, even if you use a clearing house or other service.
- The Superannuation Guarantee (Administration) Act 1992 requires you to provide a Standard Choice
- Form to your employees. This form will allow you to collect the required SuperStream related information from employees.
- If your employee does not complete and return their Standard Choice Form, you still must submit and pay their superannuation on time. If their form is not returned you must set them up with your default fund.
Information for making contributions for employees into Self-Managed Super Funds is shown below:
- For all Employees – The SMSF must provide ABN, Bank Details and an Electronic Service Address (ESA), the choice of service is found on the following link: ATO SMSF Service Providers
- Related employees – e.g. a director, of paying into a related persons SMSF then SuperStream does NOT require the use of an Electronic Service Address. Ensure however the contributions are paid electronically. ATO example of related parties: Married couple run their own business and pays into their SMSF in the couple’s names.
SuperStream Compliance doesn’t always mean it will be a tax deduction
You are still required to lodge and pay superannuation obligations by the quarterly or monthly due dates. However, the employer is not entitled to a tax deduction unless the payment is received by the respective superfunds by the due date. The employer must pay the clearing house in time for the payment to be received and allocated by the superfunds by the due date.
Each clearing house has its own cut-off dates for receiving and distributing funds so we recommend you familiarise with your Clearing House requirements to ensure the contributions are received at the fund on or before the below dates.
DON’T LEAVE REPORTING AND PAYING SUPER TO THE LAST MINUTE OR YOU MAY FIND YOUR PAYMENTS HAVE BEEN RECEIVED LATE!
|Quarter||Period of Payment||Due Date|
|1||1 July – 30 September||28 October|
|2||1 October – 31 December||28 January|
|3||1 January – 31 March||28 April|
|4||1 April – 30 June||28 July|