Starting from 1 July 2014 new superannuation data standards are being progressively introduced. The new standards require many common super related transactions to be conducted electronically.
The new standards will apply to both employers making super contributions for their employees and to self managed superannuation funds receiving employer super contributions.
The standards apply to employers with 20 or more employees from 1 July 2014 and to employers with less than 20 employees from 1 July 2015.
All employees, whether full time, part time or casual, on the books at 1 July 2014 are counted in determining which start date applies.
For most employers, the practical means of complying with the new rules will probably be to use the services of a superannuation clearning house.The clearing house will have the technology to transfer the payment and data in the format required.
The Federal Government operates a free clearing house service for employers with less than 20 employees called the Small Business Superannuation Clearing House. For employers with 20 or more employees, service providers generally operate on a fee for service basis.
Self Managed Super Funds
Self managed super funds that receive employer contributions must be able to receive the electronic payment and data details their employer is required to send. A self managed super fund therefore might need to comply with the new rules as early as 1 July 2014 depending on the size of the employer.
A self managed super fund caught by the new rules will need to engage a SMSF messaging service provider.
If you require any further information in relation to the above please do not hesitate to contact our office on 9387 5637.