What Is SuperStream?
SuperStream is the name that has been given to reforms that are aimed at enhancing the efficiency of some superannuation transactions and improving the quality of data in the system. It includes changes to the way in which rollovers are processed and the way contributions are made. Most of the changes only affect large funds; not self managed super funds, but there are some aspects that SMSFs must also be concerned with.
How It Will Affect Your SMSF?
From 1 July 2014 businesses with 20 or more employees must make their employee super contributions electronically with the member information provided in a particular format. It will apply to all businesses from 1 July 2015. This does not merely mean that the contributions are directly deposited into the fund’s bank account. SuperStream requires superannuation funds to provide their ABN, bank account details and electronic service address to the employer. The employer must then pay the superannuation contributions using the data and e-commerce standards of SuperStream. It is the electronic service address that will receive the data messages about the contributions and is more than just an email address. The trustees of SMSFs will need to make sure that they have the right things in place before 1 July 2014 if they are to receive employer contributions from businesses affected by the change.
Are There Any Exceptions?
As with most rules there are typically exceptions. The exception in this case applies to SMSFs that are considered related parties of the employer. If the fund is only receiving contributions from a related employer then they will not be subject to the new standards.
What Do Trustees Need To Do?
Clients of Green Frog Super do not need to do anything. We will be contacting our clients in the lead up to 1 July, registering any that must adhere to the new standard and providing the information that the member must give to their employer. There will be no additional fees for this service. For trustees whose accountant or administrator does not offer this service they will need to engage an external service provider if the new standards apply to them. The ATO will publish a list of eligible providers on their website. Australia Post is one of the providers that will be offering the service and details can be found here http://auspost.com.au/business-solutions/self-managed-super-fund.html
