Is your Self-Managed Super Fund ready for Super Stream?
Super Stream is a government reform which aims to improve the efficiency of the superannuation system. If your SMSF receives super contributions from an employer then you will need to ensure that your self-managed super fund is Super Stream ready.
Effective from 1 July 2015, employers with 19 or fewer employees must use the Super Stream standard. Since 1 July 2014, employers with 20 or more employees have been required to use the Super Stream standard, and all super funds, including SMSFs, must receive super contributions from these employers in accordance with the Super Stream standard however the ATO has allowed this segment of employers until 30 June 2015 to implement the process. Hence by the 1st of July 2015 all employers will need to using the Super Stream Standard to pay their employee super contributions.
Note: Your SMSF won’t have to worry about Super Stream however, if the contributions sent to your SMSF are from a related-party employer. You can then use your existing processes.
With Super Stream employers must make super contributions on behalf of their employees by submitting data and payments electronically in accordance with the Super Stream Standard.
In order for your employer to pay your super contributions in accordance to the Super Stream Stand you as the trustee of your SMSF will need to provide the following:
- Your fund’s Australian Business Number (ABN)
- Your SMSF’s bank account details (BSB and account number) for receipt of contribution payments
- Electronic service address (ESA) to receive a contribution data message.
The ESA is the critical point of Super Stream because employers must now also send data about the super contribution and the employee. The data will include the following:
- Employer details (as the sender)
- Employee details (known as the SMSF member)
- Contribution types and amounts, including any concessional amounts
- Payment details, which includes a unique payment reference number (PRN).
As a trustee of the SMSF you will need to register and obtain an electronic service address. There is currently 9 message providers open to all SMSF trustees. Please click following link to view the list of providers: https://www.ato.gov.au/
The main purpose of Super Stream is to ensure super contributions are paid in a consistent, timely and efficient manner to a member’s account. Compliance to the Super Stream Standard is mandatory and SMSF trustees will need to register for an Electronic service address and provide the necessary information to the employer in a timely manner or penalties could be applied by the ATO.
About the Author
Jacky Chan (Accountant – B.Comm)
At Zimsen Partners, Jacky has assisted all the directors and senior accountants with numerous cases ranging from individually complex returns to small and medium sized businesses day-to-day challenges.
This article was produced by Zimsen Partners. It is intended to provide general information only in summary format on accounting, business advisory and taxation issues. It does not constitute accounting advice, and should not be relied on as such.