What is SuperStream?
SuperStream is a package of reforms under Stronger Super that are designed to enhance the 'back office' of superannuation, making everyday transaction processing faster and easier.
SuperStream provides standards to superannuation funds and employers regarding how they communicate, including:
Implementing the new data and e-commerce standards for superannuation transactions.
Allowing the use of tax file numbers (TFNs) as the primary locator of member accounts.
Facilitating account consolidation and improving the treatment of contributions made without sufficient member details.
Establishing an advisory governance body to advise on the implementation and maintenance of the standards.
Does it apply to my Self Managed Super Fund?
All superannuation funds, including SMSFs, must receive contributions from medium and large employers (with 20 or more employees) in the new data and e-commerce standard.
SuperStream has already started for businesses with 20 or more employees and they have until 30 June 2015 to meet the requirements when sending superannuation contributions on behalf of their employees.
If you are employed by an employer with 20 or more employees, you will need to provide the following information to your employer in order to meet the SuperStream requirements:
Alternatively, you can confirm with your employer when they are going to implement SuperStream and provide the necessary information at least 30 days before the commencement as recommended by the ATO.
If you are employed by an employer with 19 or fewer employees, your employer is required to implement SuperStream from 1 July 2015 and have until 30 June 2016 to meet the SuperStream requirements when sending superannuation contributions. However, if your employer voluntarily adopts SuperStream before 1 July 2015, you can also provide the above information to your employer. Please also note that the SuperStream rules do not apply to SMSFs that do not receive contributions or whose contributions are made by a related party.
Notifying your employer
You need to provide the above information to your employer in any format (email, letter, etc.) or alternatively your employer may provide you with a form to complete.
If you commence work with a new employer you will need to fill out a Choice Form with your SMSF's ABN, Bank Account details and Electronic Service Address ("ESUPERFUND"). The Choice Form once completed must be provided to your Employer and NOT to ESUPERFUND.
Electronic Service Address
As detailed above, when you notify your employer, you will be required to provide an Electronic Service Address (ESA) which will identify all the information relating to the contribution being made by your Employer including the Member Name and the amount of the Contribution. We are pleased to announce that ESUPERFUND is a registered Messaging Service Provider with the ATO for SuperStream and our ESA alias is ESUPERFUND. This means that you will need to quote the code "ESUPERFUND" when you notify your employer.
Benefits of SuperStream
The major benefit of this new SuperStream system is that information relating to contributions made by your Employer will be electronically received by ESUPERFUND and no documentation or information is required from you at financial year end. The electronic information received by ESUPERFUND will be displayed in your Fund's Client Portal. This process will greatly improve the efficiency of the annual compliance process and require less input from you. We note however that the new SuperStream system applies only to Employer Contributions and does not apply to personal contributions made to the Fund. These details will be requested from you at financial year end in the normal way.
Best of All - With ESUPERFUND it's FREE!
In order to be able to accept electronic information under the SuperStream system significant IT time and cost has been invested by ESUPERFUND on behalf of its clients. We note that if this time and cost investment was not made by ESUPERFUND you would be required to source an alternative SuperSteam provider such as Australia Post to quote as the Electronic Service Address. The cost to do this with Australia Post for example is $50 per annum. Importantly ESUPERFUND has decided not to pass on any costs to clients and has absorbed all costs in relation to the new SuperStream system on behalf of clients. This means your SMSF will benefit from these changes absolutely FREE of charge!
What do I need to do?
We advise that you must provide your current employer with the necessary information as detailed above. Please also remember that trustees of SMSF are responsible for making sure that all the necessary information has been communicated to the employers and your fund is ready for SuperStream. If the employers do not receive the information from you, they may direct your employer contributions to the employer’s default fund.