SuperStream is here

Employers are being reminded that they are running out of time to switch to SuperStream – the new standard electronic payment system.

According to the Super Review, employers have been warned that in the lead up to June 30 (the deadline for small employers to switch their payment systems to SuperStream) they’ll be hearing more from the Australian Taxation Office (ATO) as it pushes all small businesses to make the switch.

In a statement, Superannuation Deputy Commissioner Simon O’Halloran said SuperStream could cater to all kinds of small businesses.

“If you’re worried you won’t be able to use SuperStream as you don’t operate electronically, be assured that there is a SuperStream option to suit every business,” he said.

Mr O’Halloran said business owners not used to working electronically could use a third party, such as a bookkeeper or accountant to do the payments on their behalf.

He also claimed to have heard a number of reports from happy employers after switching to the new system.

“Some small business owners, who are currently using SuperStream, have reportedly cut time spent on super processing by around 70 per cent each cycle,” he said.

According to the ATO, over 60 per cent of Australia’s small businesses (with 19 employees or less) have already switched to SuperStream before the June 30 cut-off date.

Larger businesses were supposed to have switched by October last year, and those who miss the deadline face fines.

The ATO claims SuperStream will significantly cut the admin involved in super payments, as well as making the system more transparent.

Employers can make all their contributions in a single payment, even if they are going to separate super funds, and payments can be easily tracked by the unique reference number – making sifting through old transaction statements seem archaic.

The new system also negates the need for employers to learn every super fund’s specific format for payments, making the entire system easier to pass on to any future business owners and bookkeepers.

There’s also a financial incentive for switching: those who use bookkeepers or accountants are likely to pay a lot less in salaries once the job becomes easier on the new system.

Employers can find a step-by-step guide to setting up SuperStream on the ATO’s website, starting with selecting the right option for their small business.

The ATO recommends that employers start the switch as soon as possible, as some payroll systems may need to be updated before they comply with SuperStream.

Click here for more information on First Super’s Clearing House.

First Super commissioned The New Daily to research and write this article. The views expressed are of The New Daily.

This publication was issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as Trustee of the First Super superannuation fund (ABN 56 286 625 181). It does not consider your personal circumstances and may not be relied on as financial advice. Content was accurate at the date of issue, but may subsequently change.