Article:

Are you ready for the new SuperStream requirements?

31 August 2016

Sharon Houghton, Partner, Business Services, Healthcare |

SuperStream is a set of Australian Government improvements, designed to make Australians superannuation system easier to use. As a practice owner, it will help you simplify the way you make contributions for your employees, and streamline your data processing requirements.

What you need to know

The ATO’s deadline for compliance with the new SuperStream requirements, for employers with less than 20 employees, was 30 June 2016.  However, the ATO have advised that they will provide compliance flexibility to small businesses that are not yet SuperStream ready until 28 October 2016. This means the ATO won’t be taking compliance action on any small business that missed the 30 June deadline.

The ATO Small Business Superannuation Clearing House service is simple to use.  All you need to do is register as an employer and provide your employees information and their fund details.  When you are ready to make superannuation payments, provide the details to the ATO and they provide you with a BPAY address to which the total amount of the superannuation for all your employees can be paid to. Current versions of Xero and MYOB also have SuperStream capabilities.

What you need to do

Familiarise yourself with your accountabilities as a practice owner so you can comply with this legislation and timeframes from the ATO. Clearing houses are advising contributions can take up to 2 weeks to process, so ensure you allow enough time for your payments.  Your superannuation guarantee contribution obligations are not met until your clearing house processes payment.  The advantage to using the ATO’s clearing house is that payments made to it are recognised when it accepts your payment.

Your personal contributions (non-concessional contributions that are not tax deductible), and related party employer contributions to your own self-managed fund are not required to be reported for SuperStream purposes.

To discuss the new SuperStream requirements further please contact your BDO team member.