You may have heard of the Australian Tax Office’s (ATO) Superstream but you may not know what it is. Superstream aims to simplify payment of superannuation contributions made by employers. Payment is made electronically and all contributions can be made in one transaction, regardless of super fund. Employers with 20 or more employees should have already started using it and small businesses (19 employees or fewer) have until 30 June to be compliant. So what’s involved?
There are 3 main steps to be taken to ensure you are ready for the 30 June deadline:
1. Choose your payment option.
2. Collect the relevant information and update records.
3. Start using.
1. Choose your payment option.
To use Superstream, both payment and employee data need to be sent electronically. You can do this via your payroll system, provided it meets the relevant standard. You may use your super fund’s online system or a super clearing house (the ATO has a free one for small business). Alternatively, you can use your messaging portal; check with your provider to see if this is an option. Your accountant or bookkeeper can advise you on the best solution for your business.
2. Collect the relevant information and update records.
You need to ensure you have the following information for each employee:
• Employee tax file number
• Fund ABN
• Fund Unique Superannuation Identifier (USI)
For employees with a Self Managed Super Fund (SMSF) you need:
• Employee tax file number
• Fund ABN
• Fund bank account details
• Fund electronic service address
These details will need to be sent electronically to Superstream once you start making payments.
3. Start using.
We recommend you start using Superstream as soon as possible so that you can ensure you are fully compliant by 30 June. This will also give you plenty of time to iron out any problems.
While there may be some initial work involved in getting your business ready for Superstream, once you are set up, it should make processing your employees’ super contributions much easier.
If you have any questions or would like some assistance with ensuring your business is ready for the 30 June deadline, feel free to get in touch.
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