As part of the Government’s goal to improve the efficiency of the superannuation system and the timeliness of processing rollovers and contributions, the way in which SMSFs can receive rollovers and contributions will change from 1 July 2014.
A new standard is being introduced which basically requires all contributions and rollovers to be paid electronically, along with a standard format electronic message which must be sent to the receiving super fund. This is new standard is referred to as “SuperStream”.
What you need to do:
If you are an existing Superfund Partners client, you do not need to register your SMSF for SuperStream – we will take care of it for you.
The only thing you need to do is to notify your employers payroll office / payroll service of your SMSFs Electronic Service Address (ESA).
The ESA for all Superfund Partners clients is as follows:
You can also download a word document template which you can use to confirm the details of your SMSF as well as provide your employer with details for your ESA:
Frequently asked questions:
Q: Is this change compulsory for all SMSFs that receive employer contributions?
A: If your employer has 20 or more employees, it is compulsory for them to comply with the SuperStream requirements from 1 July 2015. If your employer has 19 or less employees, they still need to comply – but they have until 1 July 2016 to meet the new standards. There is also a very limited exemption when the only employees are also members of the SMSF – which may cover some self-employed persons and small business owners.
Q: How much does it cost?
A: The solution available via Superfund Partners (SMSFDataFlow) is absolutely free for all our clients. Please be aware that other solutions, such as the one available from Australia Post, require the payment of an annual subscription.
Q: What happens if I don’t provide the relevant ESA details to my employer?
A: Your employer will not be able to pay your contributions to your SMSF and may be forced to pay it to a default superannuation fund not of your choosing.
Q: What is the solution for employers?
A. If your business is using an existing superannuation payment service or clearing house (i.e. a service provider), then there is not much of a change – the service provider will handle payments via the SuperStream standards – you just need to ensure that any employees with SMSFs provide you with their appliance ESA details such as ‘smsfdataflow;’ as above.
If your business currently doesn’t utilise a payroll or superannuation payment service provider, and you are looking for a cost effective solution, please contact us – we work with a number of providers and can have someone speak to you about a solution that can work for your business. Smaller employers with less than 20 employees can use the free Small Business Superannuation Clearing House.
Q: What happens if I change the accountant / SMSF administrator looking after my SMSF?
A: Our solution is entirely portable, so it would simply be a case of notifying you new accountant / administrator that you use SMSF Data Flow and they can do the rest.
Q: I’m not a client of Superfund Partners – can you help me with my SMSF?
A: Firstly you need to ask yourself – why hasn’t your current SMSF service provider (accountant / administrator) provided details about your SuperStream obligations as a trustee of an SMSF. Secondly, we recommend you register your details with SMSF Data Flow (it is free and secure) and provide the details of your SMSF and your employers and accountants contact details. Please note: If you are an existing Superfund Partners client, you are not required to register – we will take care of this aspect for you!
Q: What is the point of SuperStream for SMSFs?
A: SuperStream is all about improving the efficiency of the superannuation system. SMSFs are the largest and fastest growing part of the superannuation landscape so they have to be included in any changes to systems and technologies. This change shouldn’t be seen as an administration burden – it further increases the efficiency that a business like Superfund Partners can provide – meaning we both same time, which will translate into better and more cost effective service.
SuperStream will also make tracking employer contributions easier, meaning less chance of excess contributions tax and penalties.
Q: I’m an accountant – can Superfund Partners assist me with my SMSF clients?
A: Yes – there are a couple of ways in which we can help you. Firstly, we recommend you have a look a SMSF Data Flow from Class Super and register your details. If you are utilising Class within your business already, they would have already done the heavy lifting and registered all your clients.
If you are not using Class Super, but are interested in all the automation benefits it can bring you and your clients, we recommend you register your details with our sister company Superfund Wholesale. Superfund Wholesale is an official administration partner and re-seller of Class Super, and have a number of solutions that can assist you provide a powerful and profitable SMSF offering.
Q: Where can I find out more information about SuperStream and how it will impact my SMSF?
A: We recommend you visit the ATO website here: SMSFs – the SuperStream standard for contributions