SuperStream Contribution Implementation. Colleen Gibson Australian Taxation Office

Transcription

1 SuperStream Contribution Implementation Colleen Gibson Australian Taxation Office

2 Introduction to SuperStream SuperStream is a government reform aimed at improving the efficiency of the superannuation system It aims to provide a consistent and simplified way of making contributions It impacts employers and super funds including self-managed super funds It introduces mandatory electronic processing of data and payments for employer contributions (starting from 1 July 2014) For employers this means a simple, single channel for processing super contributions electronically

3 Key components of SuperStream standard There are four key components of the SuperStream standard: A standard set of business terms and definitions A standard data message format A standard message structure Standard payment methods

4 Rollover process Over 260 funds are processing SuperStream rollovers at a rate of approximately 45,000 transactions per fortnight Rollover experience has been good and proven many elements of the standard, including: Message integrity Speed of transactions Supporting role of enabling services Gateway role and interoperability Error messaging constructs Nerve centre

5 Contributions implementation Contributions are a major step up again Many stakeholders have already invested considerable time and money in getting ready for implementation The ATO has nearly completed all its technical preparation and launched major communication programs in the fund, employer, SMSF and intermediary segments Readiness is uneven across the segments and within clusters of each segment Start dates are locked-in through specific legislation and regulation Some flexibility exists within the Legislative Instrument for phasing in the standard s technical requirements

6 SuperStream commencement dates SuperStream commences from 1 July 2014 but must be implemented no later than 30 June 2015 for large/medium employers ( 20 or more employees) For small employers (19 or fewer employees) SuperStream commences from 1 July 2015 and they have until 30 June 2016 to meet their requirements

7 Phasing of implementation Large/medium employers Phase 1: 1 July 2 November 2014 Employers required to send minimum contribution information (Regs 7.07A and 7.07E), in an electronic format acceptable to trustee All other activity opt-in and by mutual agreement

8 Minimum data and payment requirements These provisions are effective from 1 July 2014 Reg 7.07 Employer must give the following information to the fund for a new default member New Member Registration Employee Name Address TFN DOB Sex Reg 7.07E Employer must give the following information to the fund for a contribution Contribution Employee Name Address TFN Phone number Payment reference number

9 Phasing of implementation Large/medium employers Phase 2: 3 November February 2015 Funds required to receive registrations and contributions in the standard electronic format, except where: An APRA fund and employer mutually agree to work with alternative file format in accordance with conditions set out in the Legal Instrument An APRA fund obtains a later transition-in start date Employers send and funds receive payments electronically in conformance with Schedule 3 of the standard

10 Phasing of implementation Large/medium employers Phase 3: 2 February 30 June 2015 Error messaging and member outcome messages enabled Employers (large and medium) need to complete transition-in process by 30 June 2015

11 Contributions timeline

12 Fund obligations For SuperStream contributions funds must: Accept contributions in the specified message format Accept payments from employers electronically Direct credit or BPAY Direct debit may be used if both parties agree Meet the minimum performance standards Process standard compliant contributions within 3 days Contact employers within 5 days if data is missing or invalid Refund contributions that cannot be allocated to a member within 20 business days Pass through choice contributions (recommended best practice for default or employer nominated fund)

13 Employer considerations Every business is different. In deciding your solution you should consider: Your service provider plans/offers Your business needs Cost and benefits Timings Your options may include Payroll Clearing House Bureaux Fund Portal Own your own Cloud

14 Contact: Find out more Your service provider/software provider Superannuation fund/default fund Clearing house Find out more: