SuperStream changes for SMSFs
March 29, 2016
March 29, 2016
As the SuperStream deadline is fast approaching, If you’re a trustee of a Self Managed Super Fund, it’s important you know about some changes in the way you pay super and make sure that you’re SuperStream ready.
From 1 July 2016, all employers need to use SuperStream when paying super. Whilst the employers with 20 or more employers are already using SuperStream, employers with 19 or fewer employees will need to start sending SuperStream contributions electronically to all super funds, including SMSFs by 1 July 2016. This means paying super and sending employee information electronically in a standard format.
What this means for SMSFs?
All SMSF trustees are required to receive employer super contribution payments and information sent using SuperStream when their employer starts using SuperStream. If you are not already paying super using SuperStream, it’s time that you make some preparations to ensure that you’re SuperStream ready by 30 June 2016 deadline.
Each SMSF member will need to provide the following details to their employer at least 30 days beforehand their employer’s first SuperStream payment date:
- Name of the Self Managed Super Fund
- nominated bank account details and
- electronic service address (ESA)
Not providing this information in a timely manner means that your employer will not be able to send the super contribution to your SMSF and your SMSF won’t meet its super obligations. In these circumstances employers will be encouraged to educate their employees with SMSFs to get the required information. However, after a period of time, if the SMSF has still not provided above required information to the employer, the ATO may apply a penalty to the SMSF for failing to provide the necessary information to an employer.
SuperStream standard allows SMSFs a range of benefits including:
- more timely and reliable flow of payments and information about the contributions to your SMSF
- electronic record to support your accounting and tax obligations (including your annual SMSF return)
- fewer data and payment errors.
Does SuperStream apply to all SMSFs?
Complying with the SuperStream standard is not optional, it is manadatory for SMSFs receiving employer contributions.
However, SuperStream will not affect if a SMSF:
- does not receive any contributions from an employer
- only receives personal contributions made by members
- only receives contributions by related party employer(s)
Call MAS Tax Accountants Waverley, in Mulgrave today to ensure you meet your SuperStream obligations. Contact us by any of the following options:
Head Office Phone: 1300 627 829; Mulgrave Office: 03 8510 7527; Email directly Chandi Dabare CPA at firstname.lastname@example.org or call Chandi’s mobile: 0433 437 430 or submit your details via our Contact Us page.