While the deadline to comply with SuperStream for larger employers was 1 July 2015, the ATO has announced they have extended the deadline for employers with 19 or fewer employees to be fully SuperStream compliant until 28 October 2016.
SuperStream is a government initiative with the purpose of improving the efficiency of administering the Australian superannuation system. The system requires employers to remit employee contributions and other relevant information in a standardised electronic format.
If you are a small employer, this is what you need to do before 28 October 2016:
Step 1: Choose a system
To use SuperStream you need to pay super and report to your employees in the required format electronically.
The different solutions are as follows:
- Using the ATO Small Business Superannuation Clearing House – this is a government run service available to employers with an annual turnover of less than $2 million and is free of charge.
- Using a commercial Clearing House – the default fund which you recommend to your employees may have one of these already. However, these will most likely not be free of charge.
- Upgrading your payroll software – a list of compliant software is available on the ATO website.
- Outsourcing your payroll function – they should provide a SuperStream solution as part of the engagement. If you select this course of action, you should ensure that they have the required processes in place that will make you SuperStream compliant by the deadline.
Step 2: Update your employee records
You will likely need additional information about your employees choice of fund details to enter all the required information to use SuperStream, like the Fund’s ABN and unique superannuation identification number. This information is only required for current employees and any new employees standard fund choice forms will have the information you need.
Step 3: Implement SuperStream
- Avoid last minute rush
- Don’t wait until 28 October 2016
- Start implementing SuperStream as soon as possible
- It may take time for you to familiarise yourself and collect information
- If any information is incomplete the super payment will be rejected and you may miss your superannuation guarantee obligations by the due date.
Where SuperStream is not complied with by the deadline, the ATO can impose penalties, in particular where it is held that no or little effort has been made to comply with the SuperStream requirements.
If you would like to speak to us about how SuperStream may impact you, please call us on 08 6311 6900.