There is no doubt that one of the largest administrative burdens on business today is Superannuation. The load on Aussie Small Businesses to comply and liaise with multiple Super Funds on behalf of multiple employees really does take a large bite out of productivity and is a major cause of stress in many workplaces.
The Australian Government are working on Simplifying Super with Super Stream.
A new initiative known as the Data and Payment Standard, or Super Stream, will be rolled out starting from 1st July 2014.
All Australian Employers and Super Funds will need to be compliant with the new lodgement standards, which it has just been announced, will be released in stages for business with over 20 employees being the first to come on line. Those with 19 employees or under will need to be compliant by 1st July 2015.
How will Super Stream work?
In order to meet the new standard, employers will have to comply with the following aspects:
- Payments must be made electronically to the nominated superannuation fund.
- A data message must also be sent to the nominated superannuation fund outlining details of the payment transaction, such as employee name, tax file number and superannuation fund member number. These data messages will be linked to the payment via a unique payment reference number.
- Payment and data must be sent on the same day.
What will my business need to be Super Stream compliant?
Certainly the simplest way to manage your Super Stream obligations going forward, will be to ensure your business’ Accounting or Payroll Package is Super Stream compliant.
Australian accounting software provider Reckon Ltd have announced their Reckon Accounts software will be Super Stream compliant as well as many other providers.
This is another reason to ensure your Accounting software is always kept up to date. If you are not using Accounting software or it will not be up to date by the compliance date there are some other options such as:
- Using a compliant Super Stream clearing house
- Using an independent payroll professional
- Speaking directly to your nominated Super Funds who may have their own online system
To prepare for the new standard, it is recommended that you contact your current payroll software provider or service provider to find out what services they intend to provide to comply with the standard. The ATO will soon publish a register of payroll providers who are SuperStream compliant which will include options available to trustees of self-managed super funds.
Where can I get more information?
You can also view this handy video.