SuperStream and SMSFs: Your employer will need some details, quick

The ATO has advised that as of October 28 this year, all employers will be required to be SuperStream compliant.

The previous deadline of June 30 was extended, as by mid-June the ATO discovered that many (if not most) small businesses had trouble meeting that deadline. The end of October was picked, but that too has snuck up on us and now looms large on the horizon.

After October 28, employers will be required to send contributions electronically to super funds using the SuperStream standard. This includes self-managed super funds (SMSFs). The ATO will have the option to enforce compliance action if a business is not using the SuperStream standard.

All super funds (including SMSFs) that receive employer contributions have a requirement to be able to receive contribution payments and associated data electronically.

Options include using a payroll system that meets the standard, a super fund’s online system, a messaging portal or a super clearing house like the ATO’s Small Business Super Clearing House. This is a free, optional service for small business with 19 or fewer employees, as well as businesses with an annual aggregated turnover of $2 million or less.

Employers will need to collect some new information and update employee records in their payroll file to enable employee contributions to be sent electronically via the SuperStream standard.

For employees with SMSFs, this includes providing the fund’s ABN and bank account details and a registered electronic service address to their employer.

Email template

The ATO has provided some pointers to SMSF trustees/members (see links below), and has provided the following email “template” to provide the relevant SMSF details to your employer.

The following information is provided to confirm that <Insert self-managed fund name> is ready to receive contributions sent using SuperStream.

Fund ABN: ……………………………………………………………………

Fund bank account details:

BSB: ………………………………………………………………………
Account number: ……………………………………………………..

Fund electronic service address: ………………………………………

Regards

<Insert name of employee>

Small businesses that need help with their SuperStream preparation can use the ATO’s employer checklist or register for a webinar. You can also view a recording of a past webinar.