SuperStream was implemented in 2014 and is designed to report and pay superannuation contribution electronically. It helps to improve the superannuation system by making transaction processing more efficient. With SuperStream, employers pay super contributions electronically and report contribution electronically. The reporting mechanism is generally referred to as an Electronic Service Address or ESA code.
Benefits
There are a number of potential benefits for SMSF’s including:
- Providing a more timely and reliable flow of contribution payments and data
- Improving electronic record keeping for tax and audit purposes
- Fewer data and payment errors
- Improve data matching and reducing the impact of Lost Member Super Accounts
How to register for SuperStream
From 1 October 2021, rollovers and specific release of funds within super system requires an ESA to be provided. An SMSF can only have one ESA at a time. Some Superstream providers that can be provided for rollovers or employer contributions are listed below:
- Our clients will now be able to use the ESA, BGLSF360, by default. This is applicable for both employer contributions and rollover of funds
Alternative ESA providers include the following:
- If a Fund has a Macquarie Cash Management Account setup it will be able to use Macquarie’s ESA code which is: MACQUARIESMSF. This ESA code can be used if the Fund wishes to receive employer contributions, but does not wish to send or receive any rollovers. Macquarie’s ESA code cannot accommodate rollover services.
- For Funds that needs to complete rollovers and receive employer contributions, they can register via wrkrSMSF Hub. Currently they charge $39.95 excl GST per annum for this service.
Once the Fund is registered for SuperStream, you will need to provide the following information to your employer and retailfund:
- The SMSF name
- Superstream Code e.g. wrkrSMSF
- ABN of the SMSF (also referred to as an USI or Unique Superannuation Identifier)
- SMSF Bank account details
1. Rollovers into SMSF
- Trustee can use the SMSF verification service to verify the SMSF details before rolling benefits into SMSF
2. Rollovers out of SMSF
- Before processing rollovers out of an SMSF, Trustees must use the SMSF Member TFN identity Check Service (SMSFmemberTICK) to validate the impacted Member TFN
- If rolling to an APRA regulated Fund, the Trustee will need to use the Fund Validation Service (FVS) to obtain APRA Fund details such as their bank account
3. Release authorities for:
- Concessional and non-concessional contribution caps
- Deferred and non-deferred Division 293 payments
- First home super saver (FHSS) scheme money for first home purchases.
For more information regarding SuperStream Rollover v3 on ATO website, please see here.
Compliance of a “related” business (i.e family business)
Regulation 7.07F of the Superannuation Industry (Supervision) Regulation 1994 (SIS Reg) provides an exemption to comply with the data and payment standard where an SMSF and the employer are related parties.
Temporary relief for issues with SuperStream
New temporary support measures have been released by the ATO to support super funds taking rollovers when there has been issues receiving an electronic service address (ESA) from one of the dedicated SMSF messaging providers. Some SMSF Trustees have had problems getting an ESA from an SMSF messaging provider to allow a rollover in the necessary time frame of three business days to process their requests. These new measures are only available for rollovers from an SMSF and between SMSF’s. SMSF’s that have issues getting an ESA for a rollover from an APRA-regulated super fund will need to contact that super fund directly. For an SMSF which is unable to obtain an ESA, paper form processes can possibly be approved by the ATO based on its own risk assessments. If any Trustees have had issues attempting to obtain an ESA to make or receive a rollover, they can contact the ATO at 13 10 20 and select the fast key codes 4 then 1 for further help from the tax office.
