"SuperStream" is the slick new system for the payment of superannuation contributions.
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It will make life easier for employers, at least in the long-term when implementation is bedded down. Instead of employers using paper and cheques to pay super contributions it will be all done electronically.
There is a lack of common standards among funds on payment data. Some funds still want to be paid by cheque and others require a form to be filled in by the employer before the fund can accept super contributions.
While some employers have most of their employees' super guarantee payments going to one or two super funds, many employers make the payments to several funds.
The change standardises the data requirements, removing many of the complexities employers experience when making super contributions for their employees.
SuperStream should also help speed up the processing of rollovers as well as contributions and reduce the number of lost accounts.
Most employees do not have to do anything to prepare for SuperStream. However, those employees with their own super funds will have to provide their employers with some extra information before the Superstream deadlines.
Philip Hind, the ATO's national program manager for SuperStream, says "a large number of self-managed superannuation funds (SMSFs) have already provided their details to their employers but we are encouraging the remainder of trustees to work with their employers so they can start finalising their SuperStream implementation plans".
When an employee with their own fund starts with an employer they fill out the standard "choice" form with their employer directing contributions to their fund.
But for SuperStream, if the standard choice form was filled out some time ago, more information will likely have to be provided to employers.
For example, employees with SMSFs must provide e-commerce details to their employers so that employers can update their payroll systems.
Employers and those employees with SMSFs should get moving to avoid last minute bottlenecks.
SMSFs need to have an "electronic service address" from an SMSF messaging provider so that trustees can receive employer contribution messages sent using SuperStream.
The electronic service address is used to identify where contribution messages for the SMSF are to be sent.
Employers will also need the SMSF's Australian business number (ABN) and bank details, if these have not already been provided, in order to make contributions to the SMSF electronically.
To help SMSF trustees register and obtain an electronic service address, the Tax Office provides a register of SuperStream messaging providers at ato.gov.au/Super/SuperStream/In-detail/Contributions/.
Large and medium employers with 20 or more employees were required to start implementing SuperStream from July 1 last year and have until June 30 this year to comply.
Small employers, those with 19 or fewer employees, have until June 30, 2016, to comply with SuperStream.
The Tax Office says SMSF trustees are not affected by SuperStream if they do not receive any employer contributions or only receive personal contributions made by members or contributions from related-party employers.
Related-party employers include married couples who run their own business, and the business pays contributions to their SMSF in the couple's names.
