To ensure large-scale management of Super contributions, the government came up with a reform package titled SuperStream. Put simply, from 1st of July 2014, any employer with 20 or more employees will need to make all the contributions electronically. You’ll have until 1 July 2015 to fully comply.
SuperStream applies for employers with 20 or more employees
If you have 19 or less employees on board, you can take it easy till 1st of July 2015, the day when the same rules begin to apply to you, too but any extra year until 1 July 2016 to fully comply. Is there any exceptional circumstance? Yes, if you, the employer of a firm, happens to be the related party of the SMSF, the rules will cease to apply to you. As an SMSF trustee, you will need to make sure that you have systems on board to procure hassle-free electronic contributions.
What do you need to provide to your employer?
Let us focus a little on your duty as an employee. It is your responsibility to provide your employer with the bank account details of your SMSF (account number and BSB). This is to facilitate the transfer of contributions. In addition, you have got to provide the Australian Business Number (ABN) pertaining to your SMSF. For receiving contribution data messages, you must have an electronic service address, too.
SuperStream to streamline contribution transfers
This data matching technique will be a force to reckon with and many feel, it is just what the doctors ordered, keeping in mind a lot of vagueness prevailing in the field of contribution transfers. SuperStream is all set to reduce admin costs even as it ups efficiency.
SuperStream will notify members of Super funds if their contributions are not received by a pre-stipulated day and the amount of time it took for fund transfers in the past will be reduced by “from weeks to days”.
