SuperStream – Superannuation data and payment standards update
Over the past 12 months we have endeavoured to keep you informed in relation to key dates for the implementation of SuperStream.
Just to recap, SuperStream is an Australian Government reform aimed at improving the efficiency of the superannuation system. Under SuperStream, employers must make super contributions on behalf of their employees by submitting data and payments electronically in a consistent and simplified manner.
Arrow Research Corporation recently attended an Australian Taxation Office (ATO) SuperStream webinar for employers and, based on the information shared, we can advise (prior to the official announcement) of changes to the readiness and reporting dates of the legislation the following update.
SuperStream start dates
Employers will need to work with your service provider or default fund to decide when it best suits to start your implementation.
For large to medium employers (20 or more employees) aim to start from 3 November 2014, but no later than 30 June 2015.
For small employers (19 or fewer employees) SuperStream obligations commence from July 1 2015 and they have until 30 June 2016 to meet the requirements when sending contributions on behalf of employees.
This information is based on the ATO’s SuperStream webinar for employers that took place on the 16th April 2014. Presented by the ATP SuperStream standards team.
An agreement has been reached between software developers, the ATO and super funds for an Alternative File Common CSV format to enable reporting via superfund clearing houses. This Alternative File Common CSV Format meets the data element requirements of SuperStream while making it easier for developers to produce an output that is compatible with the clearing houses, funds and other message service providers.
The obligations arising from the SuperStream legislation for large and medium employers start from 1st July 2014, but the ATO has since provided additional flexibility which means that these employers now have until July 2015 to comply, and during this time employers can use existing processes to meet their Super obligations.
Alternatively, from July 1st 2014, an APRA-regulated superannuation entity and an employer can mutually agree to use a transitional arrangement that meets the requirements of paragraph 4.2(b) or 4.2(c) of Schedule 1 to the Standard to which the Alternative File Common CSV Format complies.
In summary, the obligation for Large and Medium Employers to begin remittance in SuperStream format commences on 3rd November 2014, while small employers have until 1st July 2015 to comply. The Alternative File Common CSV Format can be used with all super funds under a transitional arrangement, therefore rationalising the number of possible file formats required by each independent super fund. Arrow Research Corporation is therefore working toward producing a CSV file that conforms to the Alternative File Common CSV Format for its Australian Software clients.
It is our suggestion that those impacted by this initative contact your super funds and advise them that submission will be via the Alternative File Common CSV Format, until such time as the XBRL/ebMS components of SuperStream have been finalised.
This information is accurate as at the 15th of May 2014. Please note that timelines may be subject to change at the ATO’s discretion.
For more information click here to access the ATO site.