SuperStream is almost upon us and Self-Managed Super Fund (SMSF) Trustees need to make sure they are SuperStream ready by 30 June 2015. Failure to do so may lead to some serious penalties.
What is SuperStream?
Basically it’s designed to make super payments between employers and super funds more efficient by requiring data to be electronically sent between them using a standard industry format.
Whom does it apply to?
It is compulsory for all super funds in Australia. Medium to large employers (those with 20 or more employees) have until 30 June 2015 to meet the SuperStream requirements when sending super contributions on behalf of employees. Small employers (19 or less employees) have until 30 June 2016.
What information do I need to provide my employer?
You need to provide your employer with the SMSF’s ABN, bank account details, and electronic service address (“ESA”). A common misconception noted by ATO is that the “ESA” is not an email address but provides specific data about the super contribution being paid.
So what do I need to do?
Act now! According to the ATO, only 60% of all SMSFs have correctly registered for an ESA – and that leaves a lot of SMSFs that need to act fast. Registering for an ESA can be a simple process (one that we are happy to provide free of charge to our clients). Contact your SMSF administrator or check out the ATO website for a list of ESA service providers here.
Remember although the deadline is 30 June 2015 your employer needs to update their payroll records and that could take time.
And what if I don’t comply with SuperStream?
Well for starters you’ll find from 1 July 2015 that your employer starts paying your super contributions into their default super fund instead of your SMSF. This is obviously contrary to why you decided to set up your own SMSF.
However, and of greater concern, is that you (as SMSF trustees) can face a $3,400 penalty for not complying with the super laws!
How can we help?
If you would like to how this will affect your SMSF Administration please contact us via office@axiomsuper.com.au.
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The information contained in this article is general in nature and does not take into account your personal situation or objectives. You should not act on this information in any way before seeking professional advice.
