From 1 July 2014, if you have 20 or more employees, you must use the new Superannuation Data and Payment Standard when making super contributions. The SBSCH (was called Medicare Clearing) is already compliant with the data standards.
Note that as at April 2014, there is proposed legislation awaiting a decision, which would delay the start date of SuperStream to November 2014, and allow eight months (to 30 June 2015), to move across to the new standards required.
Superstream offers a simpler way of making super contributions and, for many employers, will provide a single channel for making contributions to multiple super funds. All the major software companies have guaranteed to provide for Super Stream data standards within their software by the time it is mandatory for employers to comply.
Under the standard, employers will need to:
- send all super data electronically (such as the employee's details & the amount of super being paid)
- make contribution payments electronically
- link data & payments with a unique payment reference number
- upgrading your software so that it complies with the standard (if this is not automatically included in your software updates)
- engaging a service provider (clearing house) who can meet the standard on your behalf
- getting advice from your super fund on how your business can meet the standard
SuperStream Data Fields Required
- TFN (if provided)
- Member identifier
- Date of birth
- Contact details
- Contribution type (e.g. employer SG contribution, salary sacrifice)
- Contribution amount
- Fund Name
- Unique Product Identifier (if required)
- Payment date
- Payment type
- Payment reference number (unique)
- Fund bank account details
- Fund name
Self Managed Super Funds (SMSF’s) are run by the members for their own benefit and are also the trustees of the SMSF. The key principle of the SMSF is to provide retirement benefits to the members. The SMSF trustee can accept money contributions from various sources for example a Life Insurance Policy, but with some restrictions being member’s age and contribution caps. Generally you cannot accept an asset as a contribution from a member.
The income of your SMSF is generally taxed at a concession rate of 15%. For the fund to be eligible for this rate it must comply with the laws and rules of SMSF.
The trustee of the SMSF must arrange an annual audit of the fund and keep appropriate records. From 1st July SMSF trustees are required to appoint an approved SMSF auditor who is registered with ASIC.
SMSF will also be subject to the SuperStream requirements. Employees wishing to have their SGC paid into an SMSF will need to provide the employer with ABN, bank account and electronic service address of the SMSF to their employer. Note that the electronic service address is different to an email address and must be provided by a registered service provider that will act as the e-commerce gateway and message delivery service. More information and a list of registered service providers is available here: www.ato.gov.au/Super/