SuperStream is how businesses are required to pay employees superannuation in order to guarantee contributions to super funds. Money and data are sent electronically to a compliant Super Clearing House.
Currently, SMSF’s only need to be able to receive contributions from non-related employers via SuperStream. An exposure draft has been announced, proposing that, as of November 2019, all superannuation funds, including SMSF, will be required to be compliant with SuperStream. All superannuation funds should provide information to the ATO using SuperStream. They should also transfer payments to other superannuation accounts using SuperStream, however at the moment SMSFs are excluded from these requirements.
The draft extends these rules to SMSFs, so they will need to provide the following information to the ATO:
- A unique superannuation identifier (eg, ABN)
- Bank details for receiving electronic payments
- An internet protocol or other digital address (ie, an electronic service address (‘ESA’)) that can facilitate SuperStream communication.
Please note that if we manage your fund we can do this for you electronically.
Providing this information to the ATO will allow them to have more up-date data on SMSF electronic records. Other benefits from the draft include:
- Reduced compliance costs through the reduction of manual, paper processes
- Improvement of the integrity of superannuation funds as the ATO’s ability to verify SMSF data will increase
- In turn, this will be good for SMSFs’ verification service
- More timely and reliable flow of payments and information about contributions
- An electronic record to support your accounting and tax obligations (including your SMSF annual return)
- Fewer data and payment errors.
As all roll-overs and transfers between super funds are required to go through SuperStream, there is a three business day rollover period. This currently does not apply to SMSFs, but as they will need to be compliant with SuperStream, the three day rule will also apply to SMSFs.
If you are running a business this will also mean that you will need to be registered from your business’ perspective for SuperStream as well.
Concerned about how this will affect you? Not sure about SuperStream? Please give us a call with any questions you may have – we are here to help!
Please note that the advice is general advice only and does not take into account your Individual circumstance, so please make a time to talk to our team or your financial planner about your situation and let us help you put your mind at ease about your Superannuation.