SuperStream is part of the Government’s superannuation reform package which requires super contributions to be paid electronically using an online solution. The deadline for contributions to be paid electronically by EFT or BPay for all employers and self-managed super funds (SMSF’s) was 30 June 2016.
The ATO has advised that small businesses who are not yet SuperStream compliant will now have until 28 October 2016 to be ready. This also means that the ATO will not take compliance action against small businesses that were not ready by the 30 June 2016 deadline.
For clients already using Xero or MYOB, these software providers both have a SuperStream compliant solution. SuperStream means that employers can make all of their contributions in a single transaction, even if multiple super funds are used. It also allows for contributions and rollovers to be processed faster, more efficiently and with fewer errors. As everyone will be more reliably linked to their super, any unclaimed monies and lost accounts will be reduced.
The ATO advises that the majority of medium and large businesses are already using SuperStream. All other remaining employers are advised to investigate their options to ensure that they are SuperStream compliant. The ATO also advises that there could be penalties for those who deliberately choose not to adopt SuperStream. For SMSF’s, implementing SuperStream is also a legal requirement, so all trustees need to ensure they meet their obligations.
We urge you to act now to ensure that you are SuperStream compliant by 28 October 2016. The ATO may not be so lenient after this date.
If you have not adopted a SuperStream solution or you are having trouble setting one up, please do not delay in contacting us.