The deadline for self-managed super funds (SMSFs) to be compliant with the SuperStream data standards is fast approaching, and trustees who have not done so need to prepare now.
SMSF Association CEO/Managing Director Andrea Slattery says it’s imperative that trustees are compliant by 1 July – especially as there are penalties for those failing to meet the deadline, including a potential $3400 administrative penalty.
“According to figures from the Australian Taxation Office (ATO), a sizeable percentage of SMSFs are not compliant yet.”
SMSFs receiving contributions from large employers have been required to comply with the SuperStream rules since 1 July 2014 and now SMSFs receiving contributions from small employers (19 employees or less) will be able to use SuperStream from 1 July 2015. Small employers will have until 30 June 2016 to implement the required changes.
“This represents a relatively big number of SMSFs, and when you consider that employers, both large and small, will probably take some time to update the relevant information, it’s a real issue. There also will be a large inflow of information to the ATO at the last minute.”
Slattery says it’s important that trustees appreciate the consequences of not complying – their superannuation payments will end up in the employer’s default fund.
“Although they will be able to roll over the money into their SMSF, it will be a time-consuming exercise and one far better to avoid in the first place.”
SuperStream aims to improve the efficiency of superannuation by only allowing SMSFs to accept contributions and other information from employers electronically. To achieve this end SMSFs need to give employers the following details about the fund.
An electronic service address is used to receive electronic contributions messages from employers. They can be obtained via an SMSF messaging provider, with a list of providers on the ATO website.
SMSFs only receiving personal contributions from fund members or an employer that is a ‘related party’ of the fund are not required to be part of SuperStream.
Slattery says: “SuperStream will make it easier for employers to make contributions to all superannuation funds as contribution payments will be made in a standard method, no matter what funds are receiving it.”
“It’s in the interests of SMSF trustees to comply, so I urge those who have not do so to consult their advisor and get organised now.”
About the SMSF Association:
The SMSF Association is the authoritative voice for the self-managed superannuation fund sector. The Association, which represents professionals providing a range of services across various disciplines in the complex area of SMSFs, is an advocate for the highest professional standards and competence to ensure SMSF trustees always receive the best possible advice.
Contact for interviews:
SMSF Association CEO/Managing Director
M: 0417 898 317
M: 0409 585 979