SuperStream is the way all employers must pay employee superannuation guarantee contributions to super funds. With SuperStream, money and data are sent electronically in a standard format. The money and information provided using SuperStream are transferred between the employers, superannuation funds, service providers and the Australian Taxation Office.

How Does it Work?

Your employee super information is linked to your super contributions by a unique payment reference number (PRN). This means you can make all your super contributions in a single transaction, even if the payments are going to multiple super funds.

If the only contributions you make are personal contributions for yourself or contributions to a related self-managed super fund (SMSF), you don’t need to use SuperStream because these are excepted contributions.

What Happens if I am Not SuperStream Compliant?

The main problem with not being SuperStream compliant is firstly that it’s creating unnecessary work for everyone involved. It’s more work for the employer because you have to file super guarantee payments manually and individually. Then it’s more work for both the relevant super funds and the ATO who then have to process those filings manually.

On top of that, you also run the risk of financial penalties if you are not SuperStream Compliant.

I’m an Employer, How Do I Become SuperStream Compliant?

To be SuperStream compliant, a business needs to make its employee contributions electronically and in a standard format. This can be done by:

• Using a payroll system which is in line with SuperStream requirements, such as Xero and MYOB
• Using a super fund’s online system for all employees
• Using a super clearing house such as the Small Business Superannuation Clearing House (SBSCH)

I Have a SMSF, How Do I Become SuperStream Compliant?

Self-Managed Super Funds (SMSFs) must be able to receive employer contributions and the associated data electronically using the SuperStream standard. Additionally, from 1 October 2021, you can only rollover into or out of your SMSF using SuperStream.

For SuperStream you will need:

• An Electronic Service Address (ESA) – we can help you obtain one if you are yet to apply
• An Australian Business Number (ABN)
• to ensure your SMSF’s details held by the ATO are up to date, including your SMSF’s uniquie bank account

Making sure your business or SMSF is SuperStream compliant isn’t particularly onerous and could save you alot of time and effort in the long run. For more information, or to get setup for SuperStream, click here for more information.