News‎ > ‎

Is your business Super Stream Ready?

posted 2 Jun 2016, 20:37 by Gordon Kay   [ updated 2 Jun 2016, 21:44 ]

The SuperStream deadline is rapidly approaching.

If you run a small business that has 19 or fewer employees or receive contributions into a Self Managed Super Fund (SMSF), you have until 30 June 2016 to start using SuperStream.  

With SuperStream you will only need to make one electronic transaction to cover all your employees' super contributions. Super Stream is an easier way for business owners to keep onto of their Super payments on behalf of there employees.  

This means you can make all contributions payments in a single transaction, even if they're going to multiple super funds.  You simply need to specify each of your employees with their tax file number and their Unique Super Identifier (USI).

Super Stream was introduced to reduce the red tape in doing business and employing people while protecting employees super contributions. 

Heavy fines and penalties do apply if superannuation contributions are not paid on time. If you find yourself having difficulties in paying your super obligations, give priority to super over ATO tax related payments.  Than contact the ATO to established a payment plan for GST, PAYG and other business taxes.  The same applies if you have an unpaid state payroll debit with Revenue SA.

To get started, use the ATO's SuperStream employer step by step checklist

If you are unsure or need assistance with your business super, simply choose a suitable time to see us.

How much super do I pay?

The amount of super you pay is a percentage of the amount your employees earn for their ordinary hours of work less any super salary surface nominated by employees.

Currently (June 2016) you need to pay a minimum of 9.50% of each eligible employee’s ordinary time earnings.  Over time, this is expected to rise.

Ordinary time earnings are generally what your employees earn for their ordinary hours of work, including over-award payments, commissions, shift loading, and certain bonuses and allowances. Payments for overtime hours are generally not ordinary time earnings.

Which employees do I pay super for?

Generally, you have to pay super for your employees if they are:
  • 18 years old or over, and are paid $450 or more (before tax) in a calendar month.
  • under 18 years old, being paid $450 or more (before tax) in a calendar month and work more than 30 hours in a week.
This applies whether they work casual, part-time or full-time hours, and if they are a temporary resident. You also have to pay super for contractors if the contract is mainly for their labour, even if the contractor has an Australian business number (ABN).

About Self Managed Super Funds (SMSF)

If you manage a Self Managed Super Fund (SMSF) your fund must be able to receive employer contributions and the associated data electronically using the Super Stream standard.
  1. To get started you need to obtain an electronic service address to receive contribution data.  This is a little technical so simply choose a suitable time to see us if you need assistance.  

  2. Than you will need to inform your employers of your SMSF's ABN, bank account details and electronic service address.

Your SMSF doesn't need to use SuperStream if it doesn't receive any employer contributions, or the only employer contributions are from a related-party employer. For example, if you're an employee of your family business and your super guarantee contributions go to your SMSF, these contributions are exempt from the SuperStream standard.

SuperStream also doesn't apply to:
  • Personal contributions made by members
  • Rollovers to or from an SMSF.