The Australian Taxation Office has issued a warning to businesses to prepare for the introduction of the Federal Government’s super reform, SuperStream, at the start of next month.
SuperStream introduces a new, ebMS 3.0 AS4 standard for all employers to make uniform, electronic super contributions for employees.
The reform will change the way businesses make superannuation contributions in the future, as paper-based solutions will no longer be accepted and all employers will be on the same standards across the board.
Businesses employing 20 or more workers can start using SuperStream as of July 1, and will be required to comply with the new standards by the end of the next financial year.
Small employers with less than 19 staff have until 30 June 2016 to complete their transition to the new standards, and can start using SuperStream from July 1 next year.
The ATO said it expects most large and medium employers will implement SuperStream between July and December of this year.
Employers can either choose to implement software internally that conforms to SuperStream or utilise a service provider. Businesses may need to upgrade payroll software, partner with an outsourced payroll provider or use a commercial clearing house.
The reform has come as a result of the 2010 Cooper Report which found that existing processes for the capturing of an individual’s superannuation details made poor use of technology.
“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,” Philip Hind, ATO data standards and ecommerce national program manager, said in a statement.
The ATO had initially set a hard deadline for all employers with over 20 staff to to be processing employee super contributions via the new standard from July 1 this year, but revealed to iTnews in December it would consider giving employers a 12-month window to comply.
The relaxing of its expectations for businesses followed a similar decision to give regulated super funds an extra six months to prepare for the changes.