Preparing For SuperStream
Do you have employees? Then you may have already heard the new buzz word floating around at the moment, SuperStream!
Whether you are a trade business, or any business for that matter with 1 or more employees, you will need to get informed and understand the impact of SuperStream to your business.
What Is SuperStream?
SuperStream refers to a new ATO compliance system for processing superannuation data and payments electronically.
Here, employers need to make super contributions electronically (EFT or BPAY) and send the associated data electronically across the super system – between employers, funds, service providers and the ATO. It’s linked to the payment by a unique payment reference number.
The Benefits Of SuperStream?
Previously, many employers were processing employee super contributions to several funds and in different formats.
SuperStream allows you to work with a simpler and more consistent way of managing superannuation contributions. Likewise, data is also processed electronically through a standard format, offering you the following benefits:
- Using just one channel in processing several contributions to multiple funds
- Spending less time working out employee fund queries and issues
- Money and details processed are directed faster to the super funds
All in all, SuperStream gives you a more efficient super system, making it easier to be compliant with your obligations.
When Must You Comply?
Small employers (19 or fewer employees) must meet the SuperStream standard by 30 June 2016. This will apply to most of your local tradies.
Larger employers should already be using SuperStream since 31 October 2015.
Aside from understanding the process and your compliance requirements, you should consider the impact of the change to your bookkeeping and accounting systems.
Now is a good time to speak to your accountant or bookkeeper about SuperStream, and make sure, yes, that you are SuperStream ready!