13 Mar 14
On the requirement for receiving electronic super contributions from 1 July 2014 - the ATO responds
In 2014 TAXVINE No 4 (28 February 2014), Member 14 asked, in relation to the new electronic requirements for super contributions, what is the point of giving employers with 19 or fewer employees until 1 July 2015 to MAKE contributions electronically, when the employees’ funds have to RECEIVE the contributions electronically from1 July 2014.
The ATO now responds:
"From 1 July 2014, employers with 20 or more employees will start using the SuperStream standard to send contribution data and payments electronically. All super funds (including SMSFs) will be required to receive employer contributions sent to their fund in accordance with the SuperStream standard.
Small employers with 19 or fewer employers are not required to start using the SuperStream standard to send contributions until 1 July 2015. However, some small employers may choose to do so sooner.
If your client’s fund only receives contributions from small employers, your client should check with their employers when they plan to start sending SuperStream contributions. Your client’s fund will need to be ready to receive SuperStream contributions when their employers start using the Standard to send them."
And, in 2014 TAXVINE No 5 (7 March 2014), Member 17 wrote:
"Whilst my small practice operates through a company, I pay my personal employer super contributions weekly by cheque or cash. I do not use electronic banking apart from clients wishing to pay electronically. Surely there is a provision for small businesses to be exempt from this change?"
The ATO now responds:
"Thank you for your enquiry.
The SuperStream standard is mandatory for all employers, APRA-regulated super funds and self-managed superannuation funds (SMSFs).
The following super contributions do not need to be sent using the SuperStream standard:
- employer contributions from a related-party (eg self-employed or employer with an SMSF)
- personal contributions.
Under the SuperStream standard, employers will make super contributions on behalf of their employees by submitting data and payments electronically.
Small employers with 19 or fewer employees will be required to use the standard from 1 July 2015.
Small employers will be able to comply with the SuperStream standard by using the free Small Business Superannuation Clearing House."