Now is the time to be finalising your SuperStream preparations.

Employers and businesses with an SMSF are now in the final stretch as the race to improve efficiency of the superannuation system by implementing new government data standards is about to begin. Who does it apply to? What benefits will there be for your business or fund? And what changes do you need to make to ensure you're ready as the countdown begins? 

Why SuperStream?

SuperStream's main aim is to improve our current system by ensuring contributions to super funds are paid to a member's account in a timely, efficient and consistent manner. Further benefits include much faster processing of rollovers and contributions and a considerable reduction in the number of lost accounts and unclaimed monies, maximising payouts at retirement for a larger number of Australians.  

SuperStream standards apply to all employers making super contributions for 20 employees or more, APRA regulated super funds, and SMSFs receiving contributions from an employer.  

Benefits and compliance for employers

The main benefit for employers is that they will now be able to send contributions to any number of funds in a single, standard electronic format, reducing time and administration costs and taking away many of the complexities which, until now, have caused headaches for employers coping with different arrangements for different funds.

Employers have two main ways in which they will need to comply. Firstly, they must now make super contributions electronically; sending a cheque will no longer be an option. Secondly, details of the payment made, together with the employee's name, TFN and fund member number must also be sent to the superannuation fund.

Benefits and compliance for SMSFs

SMSFs can now look forward to a timely and reliable flow of payments and information regarding contributions to the fund. There will also be an electronic record readily available which will make meeting accounting and tax obligations simpler, including the annual SMSF return. 

SMSF trustees will need to comply by obtaining an electronic service address for the delivery of contribution messages. Additionally, they need to provide their ABN, bank account details and electronic service addresses to the employers of their fund members.

Individuals with an SMSF will not be affected by the standard if their fund receives personal rather than employer contributions. Nor will they be affected if contributions are made only by members or if contributions are made only by related party employer(s), for example, a husband and wife run a business which pays contributions into the SMSF.

Timing is key

The compliance deadline is 1 July 2015 so you must take action now if you are not ready. Smart clients with fewer than 20 employees wanting to be ahead of the game, however, should start making the necessary changes as soon as possible and KDA Group is ready to help. Utilising BGL's internationally recognised, easy-to-understand super fund management compliance software, we're already assisting many of our clients to be ready for SuperStream.

Why not give KDA Group a call today on 02 4861 8383 and get up and running?