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Is your Business SuperStream Compliant?

Posted by: on 20 May 2016 in Compliance, Legislation, Payroll, Tax

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Do you understand what this means for you, your business and your employees?
It is a little concerning that so many people still seem to be confused about what being SuperStream compliant actually means.

The deadline for all employers and superannuation funds to be fully compliant is just weeks away. Small businesses need to be compliant from July 1st 2016 and medium-large employers should have been compliant as of 31 October 2015.

If you’re not sure what being SuperStream compliant means or more importantly haven’t started to look at it yet, you need to read on!

From 1 July 2016 all employers have to be SuperStream compliant. If you are currently not compliant, at a high-level, this means:

  • Unable to Pay Superannuation Contributions:
    • You will not be able to pay superannuation contributions directly into the superannuation funds of your employees without the use of a clearing house, payroll provider or gateway of some description (i.e. BPAY/EFT etc. is not SuperStream compliant).
    • The only way you can EFT is if you can then ensure that the payment reference number is attached to the reporting/messaging component also and can ensure that both the payment and reporting are received by the fund within three days of each other.
  • Unable to Report on Contributions:
    • You will not be able to provide the necessary reporting on contributions without the use of a clearing house, payroll provider or gateway of some description; and
  • Employees not Receiving Contributions:
    • If you have incomplete superannuation choice details for any employees, their superannuation contributions will not reach their fund!

So what could happen if your business is not SuperStream compliant?

  • Your business may be liable for Superannuation Guarantee Charge (SGC). This is currently levied at 10% interest charge and a $20 administrative penalty per employee per quarter if you are not meeting your superannuation guarantee obligations.
  • Director Penalty Legislation was expanded a few years ago to include PAYG withholding and Superannuation Guarantee as employer obligations that the Commissioner of Taxation can persue (penalise) Directors of a company for individually.

If you haven’t already, speak to your financial system software or payroll provider, tax agent or default superannuation fund about whether you are using SuperStream compliant solutions to pay and report your superannuation obligations.

By the way, ADP has gold level SuperStream certification from the ATO!

So, are you SuperStream compliant?
Take a few minutes to check if you are SuperStream compliant – Click on the image below and walk through our simply flow chart.

SuperStream Chart







Did you discover you are not SuperStream compliant? Call ADP today and become SuperStream compliant.


For more SuperStream information:

SuperStream Compliant Product Register – A list of products and/or gateways that are SuperStream compliant

Written by: Angela Lehmann


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TAGS: Compliance compliant Super Superannuation SuperStream

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