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SuperStream - What is it, How it Affects You, and How Much Time Have You Got Left

SuperStream is a package of proposals for improving the processing of everyday superannuation transactions. With SuperStream, the Government intends to improve the quality of data in the system, allow the use of Tax File Numbers (TFN's) as the primary account identifier, encourage the use of technology to improve processing efficiency, and improve the way fund-to-fund rollovers are processed and the way contributions are made.

Some measures have been implemented, such as the TFN identifier's and mandatory data standards for processing rollovers in APRA-regulated funds. On the whole many of the changes are about processing efficiency but there will be definite benefits from things like reporting to fund members when employer contributions have not been received. In an average year there are more than 100 million super transactions processed at a cost of over $3.5 billion. Many of these transactions are currently processed manually or with legacy systems that are not designed to cope with such high volume. 

The objective of building some systemisation and efficiency into the process appears worthwhile and should lead to a reduction in administrative costs although we should not hold our breath for these savings to be passed on to fund members.

ALL Employers Will Need To Update Their Systems

July 2012 - Employers will be required to report to employee's not only the super that was accrued in a pay period but also the date on which you expect to make the payment to the employee's fund. July 2013 - Payslip reporting of actual contributions paid and the fund payment was made to rather than just accrued contributions.
July 2013 - Funds will be required to issue 6 monthly statements and report on any contributions not received.
July 2014
- Large and Medium Employers MUST use mandatory data standards for making contributions.
July 2015 - Small Employers MUST use mandatory data standards for making contributions.

The team at Complete Business Strategies are experts in accounting and information systems. We can review your existing system and processes to ensure you will be ready for the changes to the way you have to process your superannuation payments. Phone our office on (07) 5439 1600 or CLICK HERE to speak to our qualified advisers about what you need to do to comply with the proposed changes.

Other Key Dates and Initiatives

July 2013 - Provide a TFN to your fund or lose your super.

Employers are required to forward their employee's super contributions to their fund. It is up to the fund to obtain a TFN (even though the employer probably has this on record) and other identifying information within a set time frame. If it does not do that then the fund will be required to send the contribution to the ATO, as part of the unclaimed money process

January 2014 - Commencement of Auto Consolidation (Compulsory Small Balance and Inactive Account Rollover)

All funds must report all inactive accounts before October 2013. In January 2014 this information will enable compulsory fund consolidation to take place without any further input from the member. Any fund with a balance less than $1,000 (Subject to threshold review) or with no transactions in the previous two years will be automatically rolled into a single fund for the member. The identification of funds will be based on Tax File Numbers and will be conducted annually by the ATO. For members this may mean insurance cover may be lost when the rollover is undertaken so it is important that the Opt Out process is triggered beforehand.  

For more information on the Opt Out process and for further information on the compulsory rollover of small balance and inactive funds please Phone our office on (07) 5439 1600 or CLICK HERE to speak to our qualified advisers about what you need to do to comply with the proposed changes.

Example: Bob is advised that ATO online can display his active and inactive super accounts and identify if he has any lost or unclaimed super. Bob has two super accounts and decides he should consolidate them to his current active account held by Wealthy Builders Superannuation Fund. Bob accesses ATO online and elects to consolidate. When Wealthy Builders Superannuation Fund is contacted by the ATO, they commence the consolidation process. Bob has nothing further to do.

Still Unsure?? Then phone our office on (07) 5439 1600 or CLICK HERE to speak to our qualified advisers about what you need to do to comply with the proposed changes.

July to December 2014 - Enhanced New Employee Enrolment Process

The enrolment process for new employees will be modified so that employees can actively consider account consolidation at this time. If the new employee does not exercise choice the default option would be to create a new account. Any lost and inactive accounts with a balance of less than $1,000 will be transferred into the new account through the auto-consolidation process previously mentioned.

Example: Clare starts a new job and logs onto ATO online. While online, she could see a list of her superannuation accounts and exercises her Choice to have contributions made to an existing account using the information displayed. At the same time Clare elects to consolidate one of her superannuation accounts from her part-time job during her university days. At her leisure, Clare logs onto ATO online to view her superannuation information including a list of all her accounts. She later elects to consolidate another superannuation account from her previous job using ATO online.

Still Unsure?? Then phone our office on (07) 5439 1600 or CLICK HERE to speak to our qualified advisers about what you need to do to comply with the proposed changes.