From 1 July 2015, employers will be mandated to utilise SuperStream, following e-commerce standards, to electronically transmit contribution data and make payments for their staff, with the assistance of SMSF accountants.
All superannuation funds (inclusive of self-managed super funds) must only accept contributions electronically per the SuperStream standard. The following three key e-commerce details must be provided to the employers:
- your super fund’s Australian Business Number (ABN)
- your super fund’s bank account for receipt of contribution payments (BSB and account number)
- an electronic service address for receipt of a contribution data message.
Suppose the above information is not provided to the employer. In that case, employers will be forced (from 1 July 2015) to remit the super guarantee contribution (9.5% for the 2015 income year) into the employer’s default fund.
Using an electronic service provider is not legally required but is highly recommended by the ATO. Some may charge a small annual fee, whilst other providers, such as Macquarie Bank, will be free, providing your bank with them. For a list of providers, please click here.
Contributions sent to an SMSF from a related-party employer are exempt from SuperStream and can be made using existing processes. The definition of a related party employer is extensive and will depend on the structure of the employer/business. An example of a related party employer would be a “Mum & Dad” business where they contribute to their SMSF.
Should you have any questions or want to know more about SuperStream, please do not hesitate to contact us.
*Correct as of February 2015
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
