The Treasury department has released draft SuperStream regulations for consultation which would reduce the number of different super funds too which employers will need to report contributions data. These changes, if registered, would mean that from 1 July 2015 employers would only have to report contributions data to their default super fund, and that fund would give the data to any other applicable super funds.
From 1 January 2014 only super funds with a MySuper product can be an employer’s default super fund. Currently employer must give information about their employees and contributions to their default super fund and any other super funds their employees have chosen. Increasingly this is done under the SuperStream standard. As the Treasury says, this means:
“An employer may have to provide contributions information to a large number of different funds where the fund membership of its employees is diverse.”
This would change under the draft regulations, the Superannuation Industry (Supervision) Amendment (Pass Through of Employee Details) Regulation 2014, by requiring from 1 July 2015 default super funds to pass all contributions data onto any other applicable super funds. As explained in the Explanatory Statement:
“The effect of this is that each fund that offers a MySuper product must provide a service so that an employer who has chosen the fund as their default can deliver all contributions data to a single location and be certain that all data will be routed to the right destination, whether that is the default or any other superannuation fund.”
For example, say an employer currently makes contributions to the default fund, Fund A and another fund, Fund B. Currently the employer must give contributions data and make payments to both funds, Fund A and Fund B. Under the regulations the employer would still make payments to both funds, but only transmit contributions data to Fund A. It would then be the responsibility of Fund A to transmit the contributions data to Fund B.
Submissions to the exposure draft regulations close on Monday the 1st of September 2014.
Want to be kept up-to-date with SMSF and Superannuation changes – why not subscribe to our Newsletter?
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.