Many people underestimate the superannuation savings that they need to retire with, as well as how much super they have already saved. As a result, the government has brought in reforms for employers, so that contributions can be logged and tracked by employees in a process called Super Stream. For most employers, this can mean a significant change in the system of paying superannuation for employees from the system that has been in place since the early 1990s.
To comply with Super Stream, employers must pay their superannuation contributions electronically and then provide details of their payment, including the employee's name, Tax File Number and Super fund member number, to the super fund of the employees.
In the transition, employers will need to gather some additional information to comply to the Super Stream standards. This information includes:
bank account details,
electronic service addresses
ABNs for self managed super funds and
unique superannuation identifiers for APRA-regulated funds.
For Self managed Super Funds the electronic service address will be: AUSPOSTSMSF
Employers that have 20 staff or more are required to have completely implemented the Super Stream by June 30th this year.
Those with 19 employees or less, are required to start the process of implementing Super Stream from July 1st with the process being mandatory, by the 30th of June 2016.
Most accounting software packages with payroll have released integrated Super Stream solutions that automatically processes bulk superannuation payments. So now may be the time for small business to implement new software solutions for their accounting and payroll functions.
Belmores can assist by reviewing your current accounting software and provide advice and assistance in the implementation of new systems to deal with Super Stream