The new SuperStream data standards are part of the Government’s Super Reform package. The goal is to improve the efficiency of the superannuation system, to improve the timeliness of processing of rollovers and contributions and reduce the number of lost accounts and unclaimed monies by using electronic superannuation transactions.
From 1 July 2014, all large and medium employers (with 20 or more employees) must use the standard for sending contributions to funds.
From 1 July 2015, all small employers (with less than 20 employees) must use the standard for sending contributions.
Under the standard, employers will make super contributions electronically. The contribution data is sent electronically in message format to the fund, and the contribution payment is sent electronically through the banking system. The data message and payment are linked by a payment reference number which enables reconciliation at the receiving fund. Many of the key components required for this change, including e-commerce infrastructure and software solutions are currently being developed, trialed and implemented.
Employers have options for meeting the standard – either using:
What does this all mean?
What it means is that you better be really sure that your current software package is compliant with the new legislation coming on 1 July 2014. This means you have approximately 12 weeks to get prepared and if required, shift your payroll function (at least!) to a solution that ensures you are compliant. As always, cloud based software is our recommendation for a whole host of reasons.
If you are unsure or would like more information about whether your current software package complies (or not….), please give us a call or get in touch.