You may have heard that there is a new regime when it comes to paying your superannuation contributions from 1 July 2015. It’s called SuperStream and there’s no reason to be concerned about what to do. We’ll walk you through the basics right here and what you need to do to get ready for it’s introduction.
What is SuperStream?
SuperStream is essentially a new data and e-commerce standard designed to improve the superannuation system. The entire system is going electronic, increasing efficiency and transparency (and let’s be honest, room for increased ATO data-matching). The key area we’re going to focus on here is what it means for employers who need to make superannuation contributions for their employees from July 1.
What does this mean for you? It essentially means that the old method of manually filling out contribution documents and sending cheques or doing random EFT payments to various superannuation funds is going out the window.
From 1 July, you’ll be required to make all these contributions electronically using a specific format. How do you know what format to use? There are two main options for small businesses:
Using a commercial clearing house to simplify your payments. An example of this is the Small Business Superannuation Clearing House (only available for businesses with less than 20 employees). You can see more about making contributions this way here or;
You can save the hassles using the above manual process and choose to rely on your payroll software to ensure your contributions are sent in the right format. For all of you guys using Xero for your accounting & payroll, the Auto Superannuation function in Xero Payroll takes care of this (and it’s our preferred option!).
Xero’s Auto Superannuation
As mentioned above, we believe that for all our clients using Xero for their accounting & payroll, Xero’s Auto Superannuation, built inside the Xero Payroll system is the simplest and best option to meet your SuperStream obligations. A video describing how the system works is at the following link:
Xero’s Auto Superannuation is currently available on all Xero’s premium business plans. This means that if you are currently on a Standard Xero subscription, you’ll need to upgrade to Premium 10 before you can use this feature. The difference in price is currently an additional $10 per month, meaning it’ll cost you an extra $120 per year.
On the plus side, this system is ridiculously easy to use and will save you HOURS of admin time every quarter when your super contributions are due. This rings true even for businesses that only have a couple of employees. Money well spent in our opinion… You could even say it’s ‘super’ to use.
Of course, if you don’t use Xero for your accounting or payroll functions, there is a list of government approved payroll products on the ‘Superstream Certified Product Register’. You can find the list here.
Still not sure what you need to do? Don’t hesitate to give the Interactive Accounting team a call on 1300 102 606 and we’ll be happy to point you in the right direction!