By popular consensus, the changes made to the management of Superannuation contributions will have a positive impact on the SMSF industry and it is now for the SMSF professionals to update their trustees on the guidelines of the new electronic contribution regime, SuperStream.
Electronic contributions through SuperStream
SuperStream calls for usage of linked data and payments for the purpose of making electronic contributions which are easier to track. In the past, there were occasions when a discrepancy crept in between the time the employees felt their contributions were made and the time the contributions finally reflected. With SuperStream, such anomalies will peter out completely.
Reducing administrative costs
Irrespective of the number of funds in questions, employers will be able to use a single channel for making contributions. Among many other benefits, the method will reduce administrative costs. From here, SMSF members can sleep well knowing that their contributions will be paid directly and in the quickest time possible.
Real-time remittance information
Another smart addition to the game will be the real-time remittance information. This will allow trustees to rectify any possible errors they may have made with the contributions.
When does it come into ‘real’ effect?
While SuperStream came into effect on 1 July this year, trustees can still take time till 30 June next year; by when it will have become a mandatory thing. For smaller firms having 19 or fewer employees, the ‘mandatory’ deadline gets shifted by a year.
Electronic service address
Trustees will require setting up an electronic service address which any of the pertinent service providers can provide. Signup usually takes only a few minutes and makes you eligible to receive contributions message via email or login. Alternatively, trustees having administrative software packages set for themselves will be able to receive SuperStream-contribution messages automatically.
At the moment, ATO is behaving like a mentor that wants the SMSF industry to understand the rulebook well. Come 2015 and it will turn into an invigilator scrutinising the trustees for SuperStream compliance.