UPDATE: The ATO are currently sending business owners a flyer on how to prepare for SuperStream. Our compliance update for AccountRight, available from late June 2014, includes a Pay Super feature that enables your business to be SuperStream compliant when required by the ATO. Read this article for the latest information or get the latest software update here.
Here is one sad truth about your super: you still can’t afford to retire comfortably with $1 million dollars.
According to a recent Deloitte report, today’s 30 year old would need to make extra contributions to their super to live comfortably post retirement. So, what’s the magic number? It’s $1.58 million for males and $1.76 million for females.
Understandably, the government announced a raft of changes in 2011. Under an initiative called “Stronger Super” , one of the main drivers include getting employees between 20 and 40 year old to become more educated and proactive with their super investments.
Changes for business owners
From 1st July 2014, employers with more than 20 employees are required to provide timely information about superannuation contributions they have made.
SuperStream or Data and Payment Standards, is a new process requiring employers to pay their employees superannuation contributions using the government’s new data standards. In layman’s terms, it means all superannuation contributions need to be made and recorded electronically – no more cheque writing.
Employers will have to comply with 2 things under SuperStream:
1. The payment must be made electronically to the nominated superfund.
2. Details of the payment transaction, such as employee name, Tax File Number and Super fund member number are also sent to the superfund.
The government hopes that SuperStream will help:
- Speed up the time it takes for super contributions to be credited against the members super account (from weeks to just days)
- Provide better information about the amount and timing of superannuation payments to employees
- Provide notification from funds to members on whether contributions have or have not been received.
- Better data matching / consolidation by super funds in regards to money it has and whom it belongs to, for example, reduction in funds not credited against a super member.
Prepare for SuperStream with MYOB
To facilitate this compliance task, we will release an integrated SuperStream solution for MYOB products with a payroll feature including:
Here is how this will work with your MYOB software.
“ABC Bakery” authorises a superannuation payment of $50,000 for the quarter. This amount represents payment for 25 employees to 30 different super funds. The new MYOB SuperStream will then dissect this bulk payment and individually pay the different super funds and provide them with the electronic information required under the new law and data standards.
That’s it really. Once set up, it will take you just a few clicks to pay all super obligations, in the format and process that is compliant with SuperStream.
Based on feedback from a sister product, M-Powered Super, business owners love processing payroll and super electronically. For one employer, completing super payments for over 150 employees takes less than 30 minutes – that’s 5 employees done in 1 minute.
If you are using a current MYOB product to calculate and complete your payroll, we will release a SuperStream solution well before July 2014.
SuperStream will be made mandatory to businesses with less than 20 employees from 1st July 2015 onwards. However, businesses that fall into this category can use the new MYOB SuperStream process once it is available. If you are preparing and paying your superannuation contributions manually, the MYOB SuperStream process will help you save time so you can focus on growing and running your business instead.