The Cooper Committee report into superannuation has resulted in a number of changes being implemented. Included in these were several proposals for improving the processing transactions such as contributions and rollovers. These have been grouped under the name SuperStream.
As a part of these changes, employers with 20 or more employees will be required to use the new Superannuation Data and Payment Standard from July 2014. This will require contributions to be made electronically. Employers with less than 20 employers will have to commence electronic payment of contributions from the following July. To be able to meet the new requirements employers have the option of using either payroll software or a service provider.
Whilst there still some time before the rules change for payment of superannuation contributions, we would suggest employers should not delay determining which option they will use.
An SMSF that receives only personal contributions or contributions from a related party is exempt from this change. However, the growing number of employees who have commenced their own SMSF will find they need to be able to accept employer contributions electronically and be able to have them allocated to a specific member.
Members of such funds can expect their employers to want full details of the fund’s bank account and an email address to which they can send contributions details.
If this change will impact your business or SMSF and you would like support in meeting the requirements coming out of these changes, please email email@example.com to arrange for a personalised service proposal to ensure you are ready for 1 July, 2014.