The government wants to improve the superannuation system and bring it into the modern electronic world through the introduction of SuperStream, and this includes for SMSFs.
Under the new system, employers must interact electronically using approved software. Employers with 20 or more employees should have already started using SuperStream from July 1 last year, but smaller employers (those with 19 or fewer employees) have until July 1, 2015 to start to comply. Small business owners need to get their skates on to be ready in time. One cheap & easy option is to use the Small Business Superannuation Clearing House to do all your superannuation for you. This online government service is already SuperStream ready, so small employers can save themselves the hassle of implementing SuperStream.
Here are 5 steps to help you get ready.
Step 1: Assess your options
Find the solution that suits you best. Potential solutions identified by the Tax Office include:
- if you have a payroll system, you should look for updated or new SuperStream-compliant products coming on to the market – the good news is MYOB is already SuperStream compliant
- speak to your payroll software provider or clearing house about their SuperStream plansif you are outsourcing, speak to your payroll or accounting services provider
- if you rely on your default super fund for assistance with contributions, you should speak to them.You must begin implementing SuperStream from July 1, 2015 onwards, but the Tax Office will provide flexibility for you on your start date, provided you are doing your best to implement and have a firm plan to do so by June 30, 2016.There is some new data you need to collect. Some relates to all funds, some to APRA funds (retail and industry funds) and some only apply to SMSFs. You need to collect:
- Step 3: Collect new information
- Step 2: Set a target start date
|Information required||Type of fund|
|Fund ABN||All funds (including SMSFs)|
|Unique superannuation identifier (USI)||APRA funds (not SMSFs)|
|Bank account details||SMSFs only|
|Electronic service address||SMSFs only|
|Employee TFN||All funds (including SMSFs)|
The APRA funds will provide employers with their USI, but if not contact APRA for the information.
For existing employees, where you are paying contributions to their SMSF, your employees will need to supply the information specific to their fund. This includes the SMSF’s bank account details and their electronic service address.
Step 4: Update your payroll records
Once you’ve collected the new information, you’ll need to update your payroll records. Tip – make sure your payroll software has all your employee details including date of birth, phone number and tax file number already in it or the system may not process the payments properly.
Step 5: Upgrade your payroll system
As I mentioned earlier MYOB AccountRight is already compliant and MYOB Essentials will be by early June. If you use other payroll software, your software provider will be able to tell you whether an upgrade is required and, if so, when it intends to release a SuperStream-compliant version of their product.