The introduction of Superstream to employer contributions made to SMSFs will be staggered over two years.
From 1 July 2014 employer contributions from large employers (those with 20 or more employees) will have to be made in accordance with Superstream.
From 1 July 2015 the system will be extended to employer contributions from small employers unless the small employer has decided to apply the system from a date before 1 July 2015.
What is Superstream? – see below
Does Superstream affect SMSFs?
It will affect SMSFs if they receive employer superannuation contributions. These contributions could be SG contributions (“the 9.25% contributions”) and any other employer contributions – including salary sacrifice contributions.
Superstream will apply to benefit rollovers/transfers from retail or industry superannuation funds to SMSFs. However, Superstream will not apply to contributions received from a related employer.
Will Superstream affect my own SMSF?
Superstream will not apply to the following types of SMSFs:
• if your SMSF is entirely in pension phase and not receiving employer contributions;
• if your SMSF is only receiving employer contributions from related employers;
• if your SMSF is only receiving member contributions; or
• if your SMSF is only receiving member contributions and rollovers and transfers from other SMSFs.
Superstream will apply to an SMSF if the SMSF receives benefit transfers and rollovers from retail or industry superannuation funds.
What is Superstream?
Superstream (no relation to SUPERCentral) is the name of the new electronic payment system for employer superannuation contributions and benefit rollovers and transfers. Under the Superstream system, employer contributions and benefit rollovers and transfers will be made by electronic funds transfer and contribution and rollover information will be provided via electronic messages provided to an electronic mail box of the trustee. The system will replace cheques, letters and forms.
The general start date for Superstream is 1 July 2014. For certain types of employer contributions Superstream will only apply from 1 July 2015. Employer contributions and rollovers and transfers from that date will have to be made using the Superstream system.
See full explanation: http://www.supercentral.com.au/smsf-news/500/what-is-superstream
What must you do by 31 May 2014?
If you have one or more members who are employed by a large employer (has 20 or more employees) and you expect to receive employer contributions from that employer on or after 1 July 2014 then you must provide to the employer:
1. the ABN of your SMSF;
2. the BSB and account number and account name of the deposit account of the SMSF; and
3. details of the SMSF’s electronic service address.
If you do not provide the employer with the above information in sufficient time for the employer to process it, the employer will not be permitted to pay the contributions to the SMSF and will, instead, pay the contributions to the applicable default fund.
SUPERCentral is Australia’s leading online SMSF Services provider to Accountants, Financial Advisers and SMSF Administrators.
Michael Hallinan
SUPERCentral
02 8296 6222
michael@townsendslaw.com.au
townsendslaw.com.au