ATO SuperStream Reform: Are you ready?

BLOG: Are you SuperStream Ready?

On 1 July 2011, the Government commenced the implementation of the ATO administered SuperStream, a package of measures designed to enhance the 'back office' of superannuation using:

  • Internet based technology
  • Uniform electronic data transfer standards and payments system
  • ATO tax file numbers as a key identifier
  • Straight through processing of superannuation transactions including contribution

SuperStream will improve productivity of the superannuation system; reduce the time to roll-over money from one super fund to another super fund, and the processing of employer contributions.

What is SuperStream?

SuperStream is built around ‘Standard Business Reporting’ linked to the ATO and is designed to work with accounting systems using standard terms, messaging language and data packaging rules. The purpose of SuperStream is to deliver a fully digital process; removing risk of error, reducing long processing times and unnecessary member fees.

Every employer needs to be across SuperStream to ensure they are meeting their superannuation obligations especially as there will be no other alternative.

Becoming SuperStream Compliant

There are a number of ways to prepare for SuperStream, depending on your particular setup. Those businesses currently using cloud based accounting software, such as Xero can most likely access a software update offered by the supplier.

Paper based businesses or business using non cloud based accounting software, maybe need to consider a switch to cloud based software or take advantage of the ATO clearing house services (less than 19 staff only).

For an example of how cloud based accounting software handles super contributions, watch this video.

SuperStream compliant contribution obligations are being phased in as follows.

  • Employers with 20 or more employees must be SuperStream compliant from 1 July 2014
  • Smaller employers must be SuperStream compliant from 1 July 2015

Contact Rise Accounting Solutions, Osborne Park to find out more.

@TomParkerCPA

I am passionate about all things small business. I do what I do to make a real difference. My goal is to break the mould of the ‘typical’ accountant and move our profession more towards one as a proactive business advisor for small business owners looking to learn, develop, succeed in all they do.