Employers are being encouraged to prepare for SuperStream, a government reform designed to improve the efficiency of the nation’s superannuation scheme. 

SuperStream will introduce a new standard that requires all employers to make super contributions electronically with linked data and payments.

Employers can opt to use SuperStream from 1 July, and the ATO expects most large and medium employers will implement the new standard between July and December.

All super contributions will be treated in the same way – whether sent to a default or choice fund, an APRA fund or self-managed superannuation fund (SMSF).

Philip Hind, the ATO’s national program manager, data standards and e-commerce (SuperStream) said benefits of the new standard include:

• A simplification of the employer experience
• Cost reduction through the elimination of unnecessary variation and complexity
• Employers can use a single channel when dealing with super funds, regardless of how many funds their employees contribute to

“The need for reform of Australia’s superannuation system was highlighted in the 2010 Cooper Review which found the existing processes made poor use of technology and there was no consistency in the data required and how funds deal with contributions,” added Hind.

“All employers need to introduce changes in the way they currently make super contributions; although some who are already working electronically or have a clearing house partner will find these changes are relatively minor.”  

Large and medium sized businesses must introduce SuperStream no later than 30 June 2015, meanwhile small employers (those with 19 or fewer employees) will be required to adopt the standard by 30 June 2016.

Not sure how SuperStream works? Check out the infographic below, or visit the ATO website for more information.