SuperStream Information for Tax Professionals

Presented by the SuperStream Project Team Australian Taxation Office November 2016

UNCLASSIFIED

PART ONE - Presentation: SuperStream for Employers SuperStream for SMSFs

PART TWO - Interactive section: Q&A – Your questions answered

SuperStream information for Tax Professionals

Overview:

How to participate

3 SuperStream information for Tax Professionals

SuperStream is a government initiative aimed at improving the

efficiency of the superannuation system.

All reportable employer super contributions must be made using

a SuperStream compliant solution.

Employers need to pay super and report the data electronically.

Every employer needs to implement SuperStream in their

businesses

‒ Employers with 20 or more employees should already be using

SuperStream to pay their employees super

‒ Employers with 19 or fewer employees had until 30 June 2016

NOTE: The ATO provided compliance flexibility until 28 October 2016 to

small businesses not yet SuperStream ready.

SuperStream for employers

SuperStream information for Tax Professionals 4

SuperStream information for Tax Professionals 5

What does SuperStream mean for your employer clients?

All employers need to make some changes to how super

contributions are made

o Collect extra information

o Choose a SuperStream compliant payment and reporting solution

Many businesses are reporting benefits from SuperStream

o All super contributions treated in the same way

o One single transaction for contributions to multiple funds.

o Better data quality = less time spent correcting errors

o Streamlined processing of super contributions

SuperStream for employers

Collecting SuperStream information

Additional information to be collected from employees to

send with SuperStream contributions.

For employees with a

self-managed super fund (SMSF) For all other employees

Collect:

Employee’s tax file number (TFN)

The SMSF’s ABN

The SMSF’s bank account details

The SMSF’s electronic service

address.

Collect:

Employee’s tax file number (TFN)

Their super fund’s ABN

Their super fund’s unique

superannuation identifier (USI).

SuperStream for employers

SuperStream information for Tax Professionals

7

SuperStream for employers

SuperStream information for Tax Professionals

SuperStream is mandatory for reportable employer contributions made

under super guarantee and salary sacrifice arrangements

SuperStream does not apply to - personal after-tax contributions

- related employers making contributions to their own SMSF.

For employers who can’t meet the electronic requirements:

- continue to meet their super guarantee obligations as they do now;

- contact their super fund to find out if they offer alternative options that comply

with SuperStream such as direct debits or over the counter bank payments;

- there are no exemptions under SuperStream, so all employers must find a

solution or have someone lodge and pay super on their behalf;

The ATO is investigating an alternative solution for employers in

regional or remote areas with unreliable or no internet access.

SuperStream options

Common ways employers are complying with SuperStream:

8

― ATO’s free Small Business Superannuation Clearing House www.ato.gov.au/smsch

― Decision tool www.ato.gov.au/SuperStreamforEmployers

― SuperStream certified product register www.ato.gov.au/SuperStreamReadySoftware

A super fund’s

online portal

A clearing

house

Payroll

software

A messaging

portal

A tax

professional

SuperStream for employers

SuperStream information for Tax Professionals

UNCLASSIFIED – Superstream – Information session for employers 9

What does SuperStream mean for your SMSF clients?

SMSFs that receive Super Guarantee or Salary Sacrifice contributions

must be able to receive SuperStream contributions

SMSF members will need to provide their employer with their:

― ABN

― Bank account details

― Electronic service address (alias)

Many of their service providers such as SMSF administrators, software

providers and banks can provide them with the electronic service address

A list of providers can be accessed from the ATO website

https://www.ato.gov.au/Super/SuperStream/In-detail/What-you-need-to-

know/SMSFs/SMSFs---the-SuperStream-standard-for-contributions/

SuperStream for SMSF Clients

Common questions

I’m a sole trader – do I have to pay contributions under

SuperStream?

What is the related party exemption for SMSF contributions?

Do I have to use a clearing house?

I already pay super contributions using EFT or BPAY - am I

SuperStream compliant?

What do I do if an employee doesn’t provide me with information I

need to make a super contribution for them?

My current method of paying super works for me - why do I need to

change?

What if I won’t be ready in time?

11 SuperStream information for Tax Professionals

SuperStream

PART TWO - Interactive section: Q&A – Your questions answered

UNCLASSIFIED – SuperStream – Information for employers 13

More information:

ATO website: www.ato.gov.au/SuperStream

– FAQs

– Employer checklist

– Certified Product Register (find SuperStream compliant versions of

payroll software and a list of Messaging Portals)

– Register of SMSF messaging providers (to get an ESA for a SMSF)

Email: superadvice@ato.gov.au

Small Business Super Clearing House

www.ato.gov.au/sbsch

Thank you for your attendance and participation