With the Super Stream standard set to become enforced from June 30 for all businesses, now is the time to ensure you’re ready for the new changes. If you’re an employer and currently in the process of transitioning to the new electronic contributions reporting, here’s a brief overview of what you need to know.
Super Stream was introduced by the Government as a part of the Stronger Super reforms. The new standard requires employers to pay and report contributions to Superannuation Funds electronically. Both the payment and the reporting will need to be completed on the same day. These measures don’t apply to individuals who are making personal contributions direct to their Superannuation Funds, only employers.
When do they take effect?
The reforms were introduced in two stages. Last year on October 31, employers with 20 or more employees were required to use the new standards. This year, these standards will apply for all businesses with 19 or fewer employees prior to June 30, 2016.
The benefits of Super Stream
The introduction of Super Stream has a number of key benefits to employers and employees, these include:
Simplifying payment arrangements for employers, ensuring one single payment for all employees (dependent on the provider).
A standardised process of reporting to Super Funds, which reduces errors on the fund’s account while also ensuring employers spend less time handling queries with the fund.
A quicker allocation of contributions to members accounts within their Superannuation Funds.
How to get ready?
First up, employers will need to select a provider who will be able to assist with the delivery of this electronic reporting and payment service. Providers need to meet strict requirements administered by the ATO and must be on the list of approved providers (available on the ATO website). For new employees, the ATO have updated the Super Choice form to include collection of the extra information required.
If you any questions on how Super Stream will change the way you make super contributions to employees, please contact your local Crowe Horwath Advisor.