17 Jun Is your SMSF ready for SuperStream?
SuperStream is the government’s new data and payment standard, part of its Super Reform package.
It will provide a consistent, reliable electronic method of transacting linked data and payments for superannuation. SuperStream has a 30 June deadline – all funds and contributions need to be in through SuperStream by this deadline. And SMSFs need to meet some specific criteria:
How does it impact SMSFs?
SuperStream is mandatory for all employers making super contributions, APRA-regulated funds, and SMSFs receiving contributions.
SuperStream will not affect your SMSF if it:
- does not receive any employer contributions
- only receives personal contributions made by members
- only receives contributions from related-party employers.
An example of a related-party employer would be a married couple who run their own business, and the business pays contributions to their SMSF in the couple’s names.
What if my SMSF receives employer contributions?
SuperStream brings potential benefits for SMSFs, including: more timely and reliable flow of payments and information about the contributions to your SMSF and an electronic record to support accounting and tax obligations as an SMSF (including your SMSF annual return).
If you have previously provided your employer with your SMSF details, ensure they have your fund’s e-commerce details. This is required for receiving contributions your employer sends electronically using SuperStream.
Your e-commerce details are:
- your SMSF’s Australian business number (ABN)
- your SMSF’s bank account details for receipt of contribution payments (BSB and account number)
- an electronic service address (alias) to receive messages containing contributions data
Provide the above in writing or by updating your personnel records with your employer. It is best if you contact your employer to confirm the date they are planning to finalise their SuperStream preparations and make sure your SMSF is ready by this date.
What is an electronic service address?
An electronic service address is used to receive electronic contributions messages from your employer. It can be in the format of a uniform resource locator (URL), internet protocol address, or an alias for SMSFs.
If you are an SMSF trustee, you will need to obtain an electronic service address alias from an SMSF messaging provider before your employer can send contributions to your SMSF electronically.
If your SMSF does not have access to an electronic service address through an existing service provider, you will need to register with an SMSF messaging provider.
Registering with an SMSF messaging provider
The ATO has published a register of SMSF messaging providers that is open to all SMSF trustees. Talk to your SMSF professional or adviser about options available.
You may have to pay a small fee to the SMSF message provider, however there are free services available so do your research. The SMSF messaging provider will:
- give you an electronic service address (alias)
- receive employer contributions messages your employer sends to your SMSF using the SuperStream standard
- send the employer contributions messages to you
When you receive the alias, you will need to give this information to your employer. Your employer will include this information in their payroll file to identify where they will send your contribution messages.
Remember: SMSF trustees are responsible for ensuring employers that send contributions to your fund have this information. It is not the employer’s responsibility and if they do not receive the correct information will not be able to send contributions to your fund..