New data and payment standards legislation for Superannuation came into effect from 1 July 2012. Small employers – those with less than 20 employees – will have to use these standards for sending contributions to superannuation funds from 1 July 2015. Large and medium-size employers must use the standard from 1 July 2014.
Under the new standard employers will be required to make all contributions and rollovers to superannuation funds in an approved electronic form (not by cheque).
The new standards are part of the Government’s Super Reform package. They are intended to provide a consistent, reliable electronic method of transacting linked data and payments for superannuation. The goal is:
- to improve the efficiency of the superannuation system
- to improve the timeliness of processing of rollovers and contributions
- reduce the number of lost accounts and unclaimed monies.
Employers will need to ensure that they upgrade their internal systems or use a payroll supplier to help meet the new standards. Other partners, including accountants and clearing houses, funds and their administrators may be able to help as well.
For small businesses with less than 20 employees, the free Small Business Superannuation Clearing House is available to help meet super guarantee obligations. Small businesses can register for the service by visiting the Department of Human Services website: www.medicareaustralia.gov.au/ super or by phoning the Department on 1300 660 048.