The ATO is encouraging employers to prepare for the introduction of SuperStream that will change the way they make superannuation contributions in the future.
In cooperation with their service provider or default fund, employers can opt-in to use SuperStream from as early as 1 July. The ATO expects most large and medium employers will implement SuperStream between July and December of this year.
SuperStream introduces a new standard for all employers that involves making super contributions electronically with linked data and payments. All super contributions are treated in the same way – whether sent to a default or choice fund, an APRA fund or self-managed superannuation fund.
“The main benefit for employers is that the SuperStream standard will simplify the employer experience and reduce costs by eliminating unnecessary variation and complexity that has crept into the system over recent years,” Philip Hind ATO’s national program manager, data standards & e-commerce (SuperStream) said.
The improvements mean employers will increasingly find that they can use a single channel when dealing with super funds, regardless of how many funds their employees contribute to. “The need for reform of Australia’s superannuation system was highlighted in the 2010 Cooper Review which found the existing processes made poor use of technology and there was no consistency in the data required and how funds deal with contributions,” Mr Hind said. “SuperStream is one of the most significant improvements to the compulsory superannuation system since its inception 20 years ago.
“All employers need to introduce changes in the way they currently make super contributions; although some who are already working electronically or have a clearing house partner will find these changes are relatively minor.”
The ATO is focused on awareness raising, education and support for employers during the first few years of SuperStream as the new standard is adopted
“All large and medium-sized employers need to prepare now to ensure they’re ready to transition to SuperStream at the earliest available opportunity,” Mr Hind said.
A large or medium employer must complete their implementation by no later than 30 June 2015. Small employers (those with 19 or fewer employers) have another year before they commence using SuperStream, starting from 1 July 2015 but completing their implementation by no later than 30 June 2016.