Although the new SuperStream standard for superannuation payments can provide SMSF trustees with a number of benefits, around five per cent of SMSFs fail to comply with the SuperStream requirements.
Under the new SuperStream system, a non-related employer must send superannuation contributions to an SMSF electronically, using an electronic service address (ESA). For this to happen, an SMSF must first be registered with a messaging provider to obtain an ESA.
One an SMSF has been registered, the messaging provider will link the SMSF to an ESA. The employer cannot send SuperStream contributions electronically to the SMSF until this is done.
It is important that SMSF trustees check with the service provider that their ESA is active and is linked to their SMSF. If the ESA is inactive, the super contributions submitted by the employer will be rejected. SMSF trustees must also ensure that their employer has their Australian Business Number and bank account details. Employers who do not have this mandatory information may accidentally direct the employee’s super contributions to a default super fund, instead of to the employee’s SMSF.
The new SuperStream system helps ensure that employer contributions are paid in a consistent, timely and efficient manner to member accounts. It also provides a reliable flow of payments and information on contributions and achieves fewer data and payment errors due to the better integration of employers’ payroll systems.