SuperStream improves the Australian superannuation system
The Australian government is introducing a new SuperStream data and e-commerce standard which is due to begin in stages from July next year. SuperStream is a package of reforms designed to improve the superannuation system.
The most important changes include:
- a requirement for employers to use an online solution when making super payments
- a requirement for super funds to receive contributions via an online solution
- a minimum set of standards for data remitted
- it allows the use of TFN’s as a primary identifier to locate members accounts.
A few of the SuperStream benefits are:
- faster allocation of contributions to members accounts
- a reduced number of contributions being returned to employers due to insufficient member details
- improved efficiency
- a reduced number of lost accounts.
What does SuperStream mean for your business?
As of 1 July 2014, data standards becomes mandatory for all employers making contributions with 20 or more employees. As of 1 July 2015, data standards becomes mandatory for all employers making contributions with up to 20 employees
Without SuperStream reforms, each super fund sets their own requirements with regards to how they will receive payments and contribution advice details for each member. This can often make paying your employees superannuation a timely and involved process. If you have numerous super funds to pay, you could be spending several hours per quarter preparing and processing your super payments.
With the new Business Edition subscription bundles that Xero announced last week, we used this as an opportunity to embed auto-super payments across all Premium plans. This feature was previously only available in our Large subscription.
While we are aware that there are free superannuation clearing house solutions under 20 employees (such as that available from the government under Medicare) these solutions are manual and still require administrative overhead. Feedback from our partners using the auto-super payments feature has been extremely positive, so we felt offering a standard across all subscriptions was the right way to go. We believe auto super will become a mandatory component of any small business accounting software application in the future.
Making this a standard feature in our plans today means we are ahead of the curve and preparing our customers and partners for impending data standards being enforced by the government, meaning our customers will not only save time, but also ensure they are compliant with these new regulations. Check out our video on how easy it is to use the auto super feature.
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