By Aspire Consulting

Employers of all sizes and Trustees of Self-Managed Super Funds should be aware of upcoming changes in legislation affecting the way employers make employee superannuation contributions.

The SuperStream reform aims to make the super contributions process more efficient. To be compliant, employers are required to submit data and payments electronically to all super funds, even SMSFs.

I’m an SMSF Trustee: What must I do?

All super funds including SMSFs must be able to receive funds and data messages electronically in accordance with the SuperStream standard.  Trustees will need to provide contributing employers with:

• your SMSF’s Australian Business Number (ABN)
• your SMSF’s bank account for receipt of contribution payments (BSB and account number)
• an electronic service address for receipt of a contribution data message.

The ATO has compiled a Register of SMSF electronic service message providers.If your SMSF receives contributions from an employer who has over 20 employees, you’ll need to comply by 1 July 2014; if your SMSF only receives contributions from smaller employers ,you have until 1 July 2015. If your SMSF only receives contributions from a related party, you are exempt from the standard messaging requirements.

I’m an Employer: What must I do?

To comply with SuperStream, employers must submit all contributions and payment advice in a standard format, which involves electronic funds transfers, and contribution advice in the form of “electronic service messaging”.

The standard requires employers to:

• Make contribution payments electronically (no cheques);
• Send payment data (employee member number and payment amount etc) in a standard message format;
• Send data and payment on the same day.

Accounting software programs are expected to be able to provide the message format without requiring too much extra effort from employers.

Employers with more than 20 employees must comply by 1 July 2014; employers with fewer employees have until 1 July 2015. These smaller employers would do well to consider the ATO Super Clearing House, which accepts a single payment for all employees and distributes it to each fund, thus simplifying the process of super payments for small business.