SuperStream – Are You Ready?
To ensure employer contributions are paid in a consistent, timely and efficient manner to a member’s account, the government had introduced a reform that is called SuperStream.
Under SuperStream, employers must report super contributions on behalf of their employees by submitting data and payment details electronically. All superannuation funds, including SMSFs, must receive contribution details using the SuperStream data and payment standard. In which you need to register to a messaging provider to obtain ESA (Electronic Service address).
The effect of changes started:
From 1 July 2014 for employers with 20 or more employees started making contributions using SuperStream.
From 1 July 2015 for small employers (with 19 or fewer employees) will start making contributions using SuperStream.
If you are an Employer – what you need to do?
Employers can meet SuperStream by either using:
- a software solution that conforms to SuperStream, or
- a service provider who can arrange SuperStream compliance on your behalf.
Your options may include:
- upgrading your payroll software
- using an outsourced payroll or other service provider
- using a commercial clearing house; or, for employers with 19 or fewer employers, using the free Small Business Superannuation Clearing House.
- your default fund – they may also have an electronic channel they manage or can make transitional arrangements for you.
You will need to collect and store additional information about funds in order to send them contributions in accordance with the SuperStream standard.
This includes the following new information:
- New information required
- Fund type
- Fund’s ABN
- All funds
- Unique superannuation identifier (USI)
- APRA-regulated funds only *
- Bank account details
- Electronic service addressSMSFs *
Employee tax file number (TFN)
If an employer does not receive the SMSF’s details by the date required, they may ask the employee to complete and return a standard choice form.
SMSF members should be aware that if they do not provide their fund’s Australian business number (ABN), electronic service address and bank details to their employer, they may be asked to complete a standard choice form.
If you are a Trustee of SMSF – what you need to do?
As a trustee of SMSF you need to obtain an ESA (Electronic Service Address) for your Superfund and provide it to your employer together with ABN and bank details of your SMSF.
What is ESA and how do funds get one?
ESA (Electronic Service Address) is used to identify where contribution messages for your SMSF are to be sent. You will need to register your SMSF with the messaging service provider to obtain an electronic service address.
Once your SMSF is registered with the messaging provider, they will be able to link your SMSF with their electronic service address. This will ensure contribution messages can be received by your SMSF.
Note that the ESA is not an email address – employers who routinely email details of a contribution to (say) firstname.lastname@example.org because they are asked for more information are not complying with SuperStream.
If your SMSF has a bank account with Macquarie Bank, you can use ESA provided by Macquarie bank for own clients free of charge, which is MACQUARIESMSF. There is no need for registration.
Who will not be affected:
- If your SMSF receiving personal contributions from members.
- If your SMSF receiving contributions from related party only (when SMSF members are directors and employees only of own private company/business), the standards neither apply to the SMSF, nor to its related party employer.
- And of course, if an SMSF is 100% in pension phase, the standards aren’t relevant because no new money is being received.
For more information, please refer to the ATO Fact Sheet.
If you need to obtain ESA, feel free to contact us to provide you with assistance.
If you already obtained the ESA, please let us know.