From 1 July 2015, employers will be required to use SuperStream to send contribution data and make payments electronically (using e-commerce standards) for their staff.
All superannuation funds (inclusive of self-managed super funds) must only accept contributions electronically in accordance with 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.
If the above information is not provided to the employer, then employers will be forced (from 1 July 2015) to remit the super guarantee contribution (9.5% for 2015 income year) into the employer’s default fund.
The use of 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 you bank with them. For a list of providers please click here.
Contributions sent to a SMSF from a related-party employer are exempt from SuperStream and can be made using existing processes. The definition of related party employer is very broad and it will depend on the structure of the employer/business. An example of a related party employer would be a “Mum & Dad” business where they make contributions to their own SMSF.
Should you have any questions or would like to know more regarding SuperStream, please do not hesitate to contact us.
*Correct as of February 2015
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to 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 contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.