Published on May 24, 2016

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SuperStream: has your business made the switch?

Do you have 19 or fewer employees?  Have you switched to SuperStream?  If not, time is running out.

SuperStream became mandatory from 1 July 2015 and businesses have until 30 June 2016 to meet the new requirements.

To make sure all businesses are ready for the transition, the Australian Taxation Office is running a series of webinars.

Small businesses are urged to sign up for the info sessions to ensure they understand their obligations and meet legislated Super Guarantee (SG) requirements.  Substantial penalties can apply for failures to meet SG obligations, including interest on unpaid amounts, administrative costs and directors made personally liable for these charges.

Why SuperStream?smallpiggybank

Part of the federal government’s Super Reform package, the Australian Taxation Office (ATO) says employers will benefit from the simplified electronic payment process.  Businesses should notice a reduction in the time and cost spent processing contributions.  Critically, it will also assist employers to meet SG obligations.

The ATO estimates up to 20% of employers do not meet their SG obligations, finding non-compliance is especially endemic in small businesses.

A recent report by industry super fund Cbus found nearly 700,000 Australian workers do not get paid their entitled super.  It is estimated by 2023 approximately $4.4 billion of super will be lost by workers due to employers failing to meet their obligations.

By consolidating the super contribution process and making meeting SG obligations easier, the ATO aims to save time and money for businesses and ensure workers receive their entitlements.

Additional help is available

Eligible businesses can sign up to the free Small Business Superannuation Clearing House, an ATO administered service that allows businesses to make a single super contribution which is then distributed to their employees’ individual funds.

Register for a SuperStream webinar, or contact the ATO to find out more about the Small Business Superannuation Clearing House