Businesses are now generally required to pay superannuation guarantee contributions to super funds electronically in a standard format. This streamlines the process and enables employers to use one channel to pay multiple funds.
The electronic channel is a key element of the SuperStream reform program. With the majority of employers coming on board during 2015–16, it is expected to deliver estimated savings to employers of approximately $350 million per annum, with an average time saving of 70% for processing each super contribution payment.
At 30 June 2016, 570,000 employers had implemented the SuperStream standard – sharing the benefits with their 10.8 million employees.
Small employers (those with 19 or fewer employees) were required to be making contributions using the SuperStream standard by 30 June 2016. With strong support and assistance from the ATO, approximately 70% of small employers had implemented SuperStream by 30 June.
To help those who missed the deadline, we have given them more time – until 28 October 2016 – before taking compliance action, and we will continue to support them to adopt the standard.
Registered employers can make all of their superannuation contributions in one transaction, with the Small Business Superannuation Clearing House (SBSCH) distributing the super contributions to employees’ nominated funds securely. By 30 June 2016 over 212,000 (approximately one quarter of eligible small businesses) were using the SBSCH, an increase of 99,000 over the previous year.
Employers say SuperStream streamlines contributions
Many employers have shared their SuperStream experiences with us. Here are two examples:
- 'SuperStream is definitely an easier way to make payments that has reduced the super processing time. I don’t have to log into different sites to make different payments, it’s seamless. Processing time is now 5 minutes rather than 45 minutes.' – Small business employer in Collingwood, Victoria
- 'SuperStream has absolutely saved me time. One amount, one place and it doesn’t matter how many employees I need to pay… It’s brilliant. Like anything, it’s a lot of work to set up but once you’ve done it, you’ve done it.' – Employer in Phillip, ACT