Good to Great: How to Scale With an Outsourced CFO

SuperStream is a government reform designed to improve efficiency in the collection and reporting of employer contributions. The SuperStream standard comes into effect on 1 July 2014 for some employers and superannuation funds, including Self-Managed Superannuation Funds (SMSFs).

If the new standards apply to you, actions need to be taken by 31 May 2014 to ensure compliance with the new rules.

If you are an employer

Employers with 19 or less employees have until 1 July 2015 to comply with the new rules.

Employers with 20 or more employees are required to pay and send contribution data electronically from 1 July 2014. This means that under the new standards you must:

• Make contribution payments to superannuation funds electronically
• Provide contribution data to the superannuation funds in the approved data message format
• Ensure the payment and contribution data are sent on the same day

Your employees will need to provide you with their superannuation fund’s ABN, bank account details and electronic service address by 31 May 2014 to allow you to send contribution data in the approved format.

To ensure compliance with the SuperStream standards, you have the option of:

• Upgrading your payroll software to include the SuperStream capability. Contact your accounting software provider for further details;
• Using an outsourced payroll or other service provider;
• Using a commercial clearing house. (If you have 19 or less employees, you may use the free Small Business Superannuation Clearing House).

If you receive contributions in your SMSF

If you receive contributions from a related party, the new SuperStream rules do not apply to you and you can continue with your existing processes. A related party would include the members, the member’s relatives and entities that you control.

If you are employed by an employer with 19 or less employees, the new rules will apply from 1 July 2015. Some employers may choose to implement SuperStream earlier and should contact you if this is the case.

If you are employed by an employer with 20 or more employees, you need to update your SMSF details with your employer by 31 May 2014 and do the following:

• Register with a SMSF messaging provider to obtain an electronic service address.
• Ensure your fund’s bank account is able to receive contribution payments electronically
• Provide your employer with the SMSF’s ABN, bank account details and electronic service address (an electronic service address allows your employer to send contribution data to your fund in the approved format).

Macquarie Bank Cash Management Account (CMA) Holders

Macquarie Bank is offering the electronic message service free of charge to SMSF’s with a Macquarie CMA account.

To register for the free electronic message service, complete the Notification to employer form in the link below and provide it to your employer by 31 May 2014. If you receive contributions from more than one employer you need to do this for each employer.

Other Bank Account Holders

Altus uses BGL Simple Fund to prepare your SMSF accounts. BGL Corporate Solutions has partnered with Australia Post to provide electronic message service to BGL clients for a fee of $7 plus GST per fund per annum.

If you wish to utilise this service, please  so that we can register your Super fund. You will need to complete the Notification to employer form in the link below and send it to each employer that contributes to your fund by 31 May 2014.

If you wish to use a service other than these, a list of registered service providers is available at www.ato.gov.au/SuperStream.