SuperStream for Self Managed Super Funds
SuperStream aims to improve the efficiency of Australia’s superannuation system and provides a new standard for employers when making super contributions.
For employees using a compliant super fund, they will likely find that their employer has already updated their system with the required changes, but what if that employee uses a Self Managed Super Fund?
Self Managed Super Funds (SMSF’s) need to ensure that they can receive contribution messages with information about payments in the SuperStream format. To achieve this the SMSF needs to register with a messaging provider to be allocated something called an Electronic Service Address (ESA). You can find a register of SMSF messaging providers here
NOTE: Contributions sent to an SMSF from a related-party employer are exempt from SuperStream and can be made using existing processes – meaning if you are a business owner paying your own contributions into a SMSF (for example, to purchase your business premises) then you do not need to register with a messaging provider to obtain an ESA.
These changes are meant to assist employers by providing:
- a consistent and simplified means of meeting their superannuation guarantee obligations, irrespective of type of fund
- better integration with payroll systems
- consistent and lower cost payment methods
- single distribution channel for dealing with multiple funds.
Like to learn more about how SuperStream affects your business? Why not check out our related article: Preparing for SuperStream