The Australian Taxation Office has recently sent letters to Self Managed Superannuation Fund (SMSF) trustees containing information on their new SuperStream compliance obligations.
SuperStream is a service product operated under the auspices of the ATO designed to consolidate the processing of superannuation payments through one ATO service which in turn will pay on the members contribution to the members designated fund. The service is targeted at tighter control over the management of compliance by employers in meeting superannuation obligations for their employees.
According to the ATO advice from 1 July 2014, employers with 20 or more employees are required to send contributions electronically to all superannuation funds, including SMSFs designed to provide a consistent and more efficient process for receiving contributions, improve data quality and simplify employer’s obligations.
In a letter to trustees on Friday 28 February 2014 the ATO Deputy Commissioner laid out the new requirements for SMSF trustees that receive employer contributions. Under the new regime, each SMSF member will be required to provide the ABN and bank account details of the fund to their employer by 31 May 2014.
In addition, SMSF members will need to obtain an electronic service address by which communications regarding contributions can be facilitated. These services will be available from various service providers including administrators and e-commerce gateways, potentially at a cost.
Class Super has suggested that the letter contains significant new information that trustees and their advisers need to be aware of. Professionals that work with trustees will need to respond to which message delivery service is appropriate for their client, and may ultimately be the one providing the information to employers.
SuperStream may have a number of long-term benefits for trustees including efficiencies which potentially could result in downward pressure on administration costs and allow superannuation service providers to offer better quality service.
Class Super recently launched SMSF Dataflow, an online service to assist with SuperStream compliance obligations.
Further information can be found on the ATO webisite.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.