SuperStream is the name of a set of proposals introduced by the Federal government that changes how businesses make superannuation payments for their staff.
SuperStream required employers to make compulsory electronic payments to their employees’ nominated super funds each month, and file super payments by tax file number rather than the fund name and membership number.
An employer who failed to pay by the mandated date would face a fine of 100 percent of the value of the superannuation payment.
The first stage of the scheme will roll out 1 July 2014 and became mandatory for all employers making contributions with 20 or more employees. As of 1 July 2015, the SuperStream regulations became mandatory for all businesses.
“I think it’s a really good step forward. It indicates the Australian Tax Office is taking the development of using electronic data exchange seriously,” says Richard MacLean, CEO of KeyPay, a cloud payroll app that worked with Xero, QuickBooks Online and Saasu.
SuperStream would reduce mistakes made by businesses collecting employees’ details and making payments.
“For an average SMB there would be significant time savings from an automated process. If the data was processed before 4 pm the super would be processed the same night,” MacLean says.
MYOB plans to integrate SuperStream service with AccountRight Live Plus and LiveAccounts with automatic bank reconciliation.
Xero’s premium plans included automated super payments for employees.