Superstream & Self-Managed Super

What is SuperStream?

“SuperStream” is the name the Government gave to a series of recommendations made from The Cooper Review.
The recommendations are all designed to improve the efficiency with which money and data flows around the Superannuation system.
Whilst the changes are specifically targeted at large Funds, Self Managed Superannuation Funds (SMSF’s) are affected.
Who is affected by SuperStream and when?
The rules do not apply to contributions made by an employer who is a related party of the SMSF.
The rules do not yet affect any payments other than employer contributions. Therefore, a SMSF that never expects to receive employer contributions can take no action.

From 1 July 2014, all employers with twenty (20) or more employees are governed by the new rules. As a result, a SMSF receiving contributions from such an employer is affected.

From 1 July 2015, all employers, regardless of size, must comply with the new rules.
What are the consequences for your SMSF?

The rules have effectively two (2) components:
1. Rules around how the contribution is paid (Payment Standards).
– The contribution must be paid electronically, that is direct bank transfer, BPay etc but not by cheque.
2. Rules around how the transaction is communicated (Data Standards).
– An electronic message must be sent to the SMSF’s new “electronic service address”.
– The reference information accompanying the electronic payment must include an ID that matches the electronic message.

SMSF’s will need to ensure that they have somewhere to receive and interpret the electronic message/s.
Several organisations intend to provide an electronic service address facility (such as Australia Post). The Australian Taxation Office (ATO) intends to list all providers on its website shortly.

What if your SMSF does nothing?
The ATO can impose significant penalties for failure to comply with the new rules – 20 penalty units being $2,000 – each time the new rules are breached. The penalties apply to both employers and SMSF’s.

What do you need to do as Trustee of a SMSF?
Our SMSF software provider has advised that they will be offering an electronic service address facility for our clients.
No action required by you at this stage, except for being aware of the new rules.
Once further details are released by the ATO and our SMSF Software Provider, we will be in contact with you and arrange for registration of your SMSF.

If, in the meantime, you have any questions, please do not hesitate to be in contact.