Are SMSFs ready for SuperStream?

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Recent Update: As announced by the Government, there will be some delay allowed in the implementation timetable for SuperStream. 

The ATO is encouraging SMSFs to get ready for SuperStream.

From 1 July 2014 SMSFs will be required to be capable of receiving Employer Contributions information electronically through SuperStream. SuperStream is part of the Stronger Super reforms with the goal of improving the administrative efficiency of the Superannuation system. Up to now SuperStream has largely only been relevant for APRA funds, however from 1 July 2014 part of it will start to apply to SMSFs by requiring them to be able to received contributions information from employers. Integrating SMSFs into the SuperStream system will likely require the use of an SMSF Messaging Provider to act as an intermediary:

SuperStream SMSF Process

Businesses with 20 or more employees will need to be setup for SuperSteam from 1 July 2014, businesses with fewer employees have until 1 July 2015, though they may implement it sooner. In order for businesses to use SuperStream super funds must be able to receive the information – hence the start date of 1 July 2014 for SMSFs. The ATO has been notifying trustees of SMSFs associated with large employers regarding the  1 July 2014 start date, including that the employers need to be notified of the SuperStream details by 31 May 2014  However there is no proscribed format for this information, until the ATO releases the updated Standard Choice Form sometime in April. The following is the information that employees with SMSFs will need to provide to employers:

  • The funds’ ABN
  • The funds’ bank details
  • The funds’ Electronic Service Address (from the SMSF Messaging Service)

Note however, that the SuperStream contribution standards don’t apply to SMSFs where the employer is a ‘related party ‘ of the SMSF. On the other hand failing to comply with the standard is punishable by an administrative penalty of 20 units, currently a total of $3,400, though the ATO says that there may be a grace period. More detail can be found in the The Superannuation Date and Payment Standards 2012 Legislative Instrument, which is made under s34k(3) of the Superannuation Industry (Supervision) Act 1993. The ATO maintains a register of SMSF messaging providers, depending on the provider the price ranges from $0 to $50 per year. Note that some of these services are still being developed. The following SMSF Messaging Providers are open to any SMSF to use them as the SMSF Messaging Provider for SuperStream:

SMSF Messaging Providers – Open
Australia Post$25 for first year, $50 thereafterLink
Click SuperPricing not publishedLink
ComputersharePricing not publishedLink
Contributions Hub$ 10 – once onlyLink
GBST Wealth ManagementFreeLink
Klui$20 – once onlyLink
PwCPricing not publishedLink
SMSF DataFlowFreeLink
SuperChoice Services Pty LimitedFreeLink
Westpac QuickSuper SMSF Gateway$22 per yearLink

The following SMSF Messaging Providers require an SMSF to use a particular brand of software, or a particular service – such as a bank account, in order to use them as the SMSF Messaging Provider for SuperStream:

SMSF Messaging Providers – Restricted
AMP SMSF SolutionsRequires use of admin serviceLink
Ascend Self Managed SuperRequires use of admin serviceLink
BGLRequires use of softwareSimple Fund Desktop – $ 7.70 per yearSimple Fund 360 – FreeLink
Cavendish SuperannuationRequires use of admin serviceLink
Colonial First State Custom SolutionsRequires use of investment servicesLink
Class SuperRequires use of softwareLink
ClearView Wealth Solutions InvestmentsRequires use of investment servicesLink
ESUPERFUNDRequires use of admin serviceLink
Macquarie Bank LimitedRequires use of banking serviceLink
Mercer Portfolio Service Investment PlanRequires use of investment servicesLink
MLCRequires use of admin serviceLink
MultiportRequires use of admin serviceLink
netwealthLimited to netwealth customersLink
Reckon APS Desktop SuperRequires use of softwareLink
SupercorpRequires use of softwareLink
yourSMSFRequires use of admin serviceLink

Source: ATO and individual websites, pricing may change, note that none of these services have been used or tested by SolePurposeTest Note: This table has been updated since originally posted to reflect additions and changes to the SMSF Messaging Providers. In time SMSFs will may also need to accept rollover information using SuperStream, though no date has been set for this, as it required the SMSF Bank Account Verification Service. However the government has announced they will not be proceeding with the changes necessary to introduce the verification service, it is unclear at this stage the implications this will have for applying SuperStream to SMSF rollovers.   Want to know more about SMSFs and Superannuation – subscribe to our NewsletterRSS feed or follow us on Twitter.   This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.

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