Are you ready for SuperStream?
Mandatory changes to Australia’s superannuation regime beginning on July 1 will affect how employers make their super contributions.
SuperStream will require employers to update existing payroll systems so additional information about employees can be provided to the ATO and to ensure transactions and data comply with a prescribed electronic format.
The changes, which are part of broader superannuation reforms, will also give businesses with annual turnover below $2million access to the Small Business Superannuation Clearing House (SBSCH).
“This single measure will provide approximately 27,500 additional small businesses with a cost-free solution to help them meet their superannuation obligations,” Federal Minister for Small Business Bruce Billson said.
The SBSCH is designed to help small businesses meet their Superannuation Guarantee obligations by allowing them to pay superannuation contributions in one transaction to a single location.
From July 1, employers will also no longer be required to offer choice of fund forms to temporary resident employees or to employees whose superannuation fund has merged.
“This measure will not only reduce unnecessary red tape but it will also reduce the number of employers who become liable for heavy penalties after inadvertently neglecting to provide choice,” Mr Billson said.
KEY DATES FOR SUPERSTREAM
If you have more than 20 employees
The SuperStream rollout started on July 1, 2014. You have until June 30 to ensure you are compliant with the new requirements when sending super contributions on your employee’s behalf.
If you have 19 employees or fewer
SuperStream roll out will begin on July 1. You have until June 30, 2016 to ensure you meet the new requirements when sending super contributions on your employee’s behalf. Voluntary adoption of the scheme was available from July 1, 2014.
More information is available from www.ato.gov.au/Super/SuperStream