What is SuperStream?
SuperStream is a set of government measures designed to improve the efficiency of superannuation transactions between employers and super funds. SuperStream introduces the following benefits:
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timely electronic processing of transactions
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improved cost and time efficiencies for employers and super funds
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fewer lost and duplicate accounts, and
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faster allocation of money to member accounts.
How SuperStream benefits you
SuperStream offers you and your business a wide range of benefits:
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Increased efficiency – Approved clearing house solutions like MLC SuperEzy allow you to pay all your employees’ super through one channel – regardless of who their super is with.
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Saving time – You’ll spend less time dealing with employee data issues and fund queries.
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Rapid transactions – The efficiency and transparency of electronic contributions will allow for timely allocation and confirmation of your contributions.
What the changes mean for you
You’re required to make all Super Guarantee (SG) and other types of employer contributions in an electronic format that meets SuperStream’s ‘Data and Payment Standards’.
This means:
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paying all contributions electronically (no more cheque contributions)
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sending contribution data electronically in a new standard message format
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ensuring data related to contributions is sent on the day of payment
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sending new member registrations and existing member amendments in a new standard message format; and
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responding to super fund requests for information within 10 business days.
What you need to do
You’ll need to make your SG and other types of employer contributions in an electronic format that meets your SuperStream obligations.
When do these standards apply?
The SuperStream data and payments standard applies from 1 July 2015 for businesses with 20 or more employees. The ATO and APRA recently advised that they would not take direct compliance action towards companies that haven’t met the deadline until after 31 October 2015, providing you have made a reasonable effort to meet the standards and advised them of your intended compliance date. The ATO and APRA encourage you to contact them for assistance in meeting the Standards deadline. For more information, refer to www.ato.gov.au/superstream
All MLC superannuation products meet the SuperStream requirements.
19 or fewer employees?
If you employ 19 staff or less, you can move to the standard any time prior to 1 July 2016, before the SuperStream requirements come into effect. If you haven’t prepared your business for SuperStream yet, you still have time. Contributions made to MLC via your existing method will continue to be processed using our normal business processes until 1 July 2016.
What is a Unique Superannuation Identifier (USI)?
In 2013, super funds were required to register USIs to identify each of their products.
Over coming years, USIs will replace Superannuation Product Identification Numbers (SPINs) as the primary way to identify individual super products.
You will find a list of USIs for MLC’s products here.
Use of tax file numbers (TFNs)
Employee tax file number (TFN) details you provide to MLC must be checked against Australian Taxation Office (ATO) records. If an employee’s details don’t match those held with the ATO, we cannot register a TFN for them. As a result, these employees may pay more tax on their employer contributions than required.
Where an employee’s TFN is returned from the ATO as ‘unmatched’, we may need to follow up with you to get the correct information.
What about employees with self-managed super funds (SMSFs)?
Under SuperStream, there are specific requirements for making contributions to employees which came into effect on 1 July 2014.
To contribute to SMSFs, you must now make your payments electronically and provide the following information when doing so:
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SMSF name;
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SMSF Australian Business Number (ABN);
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SMSF bank account number and BSB for receipt of electronic payments; and
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SMSF electronic service address (ESA) for receipt of an electronic contribution data messages.
If you haven’t already received the above information from your SMSF employees, you will need them to provide it to you in order to make contributions for them.
Please contact us on |PHONE| for more information.