SuperStream is a data format that Funds must use in order to accept contributions from 1 July 2014. The SuperStream reforms will provide a consistent and reliable method for sending and receiving superannuation messages electronically. This will reduce administration time.
Start date for large and small business
Medium to large employers (defined as an employer with 20 or more employees) are required to adopt the standard from 1 July 2014. Small employers will be required to comply from 1 July 2015.
What SMSF trustees need to do
SMSF Trustees must ensure their Fund has the ability to receive electronic messages and electronic payments associated with employer contributions from 1 July 2014. Generally, if the employer asks for these codes you will need to act on the steps below. The electronic message can be delivered through the use of a message service provider (see below). The best option is for the SMSF itself to receive the electronic file. So use your SMSF email address for this purpose.
The key objective of these new data and payment standards are to:
- Help speed up the process time of contributions to Members;
- Provide better information about super payments made to employees;
- Provide notification to Members where contributions have or have not been received; and
- Improve data matching and reducing the impact of lost member super accounts.
A significant frustration for SMSFs has been the timeframe for rollovers from APRA regulated funds to SMSFs. Once a Fund has adopted the new standard, the SMSF will be able to receive a rollover electronically from an APRA regulated Fund (effective from 1 July 2014).
How do we go about
Register with one of these providers to obtain a SuperStream code:
- Use SMSF DataFlow where you as Trustee can register for free. It’s easy to register and most Funds use this; or
- Macquarie’s electronic service address is: MACQUARIESMSF. This is a free service if your SMSF has a Macquarie CMA Bank Account. No need to register, you are already on their system. If your employer wants a form confirming the Electronic Service Address (ESA), download form here); or
- Use the BGL Electronic Service Address (ESA) AUSPOSTSMSF (paid service $25 p\a)
Then give your employer the SuperStream code and the following:
- The SMSF name;
- ABN of the Fund (also referred to as an USI or Unique Superannuation Identifier);
- Bank Account number and BSB of the Fund.
Compliance of a ‘related’ business (i.e. family business)
Regulation 7.07F of the Superannuation Industry (Supervision) Regulation 1994 (“SIS Regs”) provides an exemption to comply with the data and payment standard where an SMSF and the employer are related parties.
Timeline for implementation
SuperStream started on 1 July 2014 and small business with less than 20 employees received an extension until 1 July 2016 to implement SuperStream.
A: No, if there’s no contributions to the SMSF, no need to register for SuperStream.
A: You don’t need to use SuperStream because these are exempt contributions.