We’ve all known this day would come. On 30 June 2016 all small businesses – 19 employees or less – will need to make sure they’re SuperStream compliant. There’s a lot of information, but the fundamentals are pretty straightforward. To help you wade through it all, we’ve identified the top five things you need to be aware of.
1. It’s all about making life easier for business owners
SuperStream is part of the Government’s reform to make it easier for businesses and funds to process superannuation transactions. Under SuperStream super payments are submitted electronically – making it consistent and simple. While business owners sometimes dread change, SuperStream is expected to make life easier because it’s far less complicated – employers have a single channel for making employee contributions into multiple funds, so you don’t have to go to different websites to meet your obligations.
You’ll ultimately spend less time on super admin because the data will all be consistent. The ATO says SuperStream is reducing the time business owners spend on their super admin by around 70%. Depending on the size of the business, this means saving anything from about 1.5 hours to a whole day’s effort each payment cycle.1
2. The deadline is looming
For businesses with 19 or fewer employees, 30 June is the deadline. There aren’t any general exemptions, but you may be able to make a hardship case if, for example, you live in an area with no internet access.
3. It’s mandatory
If your business makes Super Guarantee contributions, you have to be SuperStream compliant. If you don’t meet the compliance date you need to work out a compliance plan with your payroll provider and take the next contributions cycle as the opportunity to implement. The ATO is emphasising education and support at this stage, but ultimately there may be penalties for non-compliance.
4. If you’re not ready you need to prove you’re getting ready
If you’re not ready on 30 June, you need to have a firm plan in place. The ATO expects businesses to have a compliance plan sorted. You need to have a start date to implement your first contributions and you need to have engaged with a solutions provider that is SuperStream compliant.
5. Businesses have options to get it rolling
There are two ways to become SuperStream compliant; use a payroll system that meets the standards or use a compliant superannuation clearing house. You might need to update your payroll system to make sure it’s ready for SuperStream – it will be worth it in the long run!
If you have 19 or fewer employees, or a turnover of less than $2 million a year, the ATO also offers a clearing house-only solution.
Find out more
If you’d like more information about SuperStream, please call us on |PHONE|
Important information and disclaimer
1 Source: ATO SuperStream info pack for third parties. December 2015