Get Ready For Superstream

In a nutshell, Superstream is an advanced package dedicated to improving everyday superannuation transactions. The process of submitting payments and essential data will be made much easier with the use of this system. Employers with more than 20 employees will have until June 30, 2015 to complete the requirements. However if a company has less than 20 employees, employers need to comply with the requirements until June 30, 2016. To ensure that employers are ready for these changes, it is important that they also prepare contribution data following the electronic format. The employers will adopt the new standard by June 30 2017. All employers that are making super contributions are mandated to use SuperStream.

Reasons for introducing SuperStream:calculator 695084 1280

It is every employer’s obligation to ensure that employee contributions are paid in a consistent and timely manner. With this new system, discrepancies will be prevented because transactions are done electronically.

Before employers can use SuperStream, changes have to be made with their existing system. Otherwise, there will be some issues with adopting SuperStream. The software that employers need to use should be compatible with SuperStream. Employers can either upgrade their payroll software or a third party service provider. For employers with less than 20 employees, another option to consider is using a commercial clearing house. This is also referred to as free Small Business Superannuation. Since this is a completely different approach, employers will also be required to collect additional information for the electronic processing to take place. The essential information includes electronic service address, bank account details, ABN and unique superannuation identifier.

The Significant Benefits of Superstream to Employers and Employees:

Employers

• Employers will only spend less amount of time dealing with fund queries and data issues.
• Employers save on the cost of processing payment and contributions.
• Since SuperStream only uses a single channel, employers can focus on a systematic process for handling employee contribution.
• Superannuation obligations become less stressful because there is a steady flow of information and cash.

Employees

• Employees will have greater peace of mind as payment processing will be less prone to errors.
• Payments and contributions are processed faster than using the old approach.
• Employees will have better retirement savings as the new system is more efficient.
• Employees will be notified once their contributions have been received.

How does SuperStream work?

SuperStream has four elements, which are essential for each transaction being made:

• Payment methods which have been set using standard electronic format.
• Standard message structure designed for sending and receiving notifications or messages when funds have been received.
• Data format so employees receive reports of their contributions.
• Business terms and definitions used for describing employees’ contributions.

While these are considered technical details of SuperStream, employers should not worry about it so long as compliance with the requirements is observed. In the event SuperStream is prevented from sending notifications of contributions due to internet outages or technical issues, the alternative channels will be used such as paper and electronic options. Employers must also include the reasons for using these options. These contributions cannot be rejected if these reasons are indicated.

For employers to get a better grasp of this new system, support tools will also be provided and these include support mailbox, seminars, self-help materials, which can be accessed online and links to the system’s framework.

Andrew Donnelly

Written by : Andrew Donnelly

Andrew Donnelly is a degree qualified accountant and registered tax agent. He is the principal of Brisbane Bookkeepers, which provides bookkeeping services to small businesses in Brisbane and its immediate surrounds.

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