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  • Feature: SuperStream improves the experience for fund members, employers and super funds

    In consultation with the superannuation industry, we led the planning and implementation of SuperStream as part of the government’s 2010 Super Reform Program. SuperStream has greatly accelerated the standardisation of employers’ super contributions on behalf of their employees. It involves employers sending all super payments and employee information electronically in a standard format.

    SuperStream is one of the largest changes to Australia’s financial system, with an estimated investment across the industry of $1.5 billion. More than 1 million businesses have been involved in the rollout, with over 800,000 employers, 200 APRA funds and approximately 350,000 SMSFs now experiencing the benefits of the reforms.

    The success of the SuperStream program was recognised by the Institute of Public Administration Australia with the Gold award for Excellence in Public Administration in November 2016.

    In late 2016, we undertook a benefit assessment of SuperStream and found it had generated a pipeline of benefits estimated at $2.4 billion per year in members’ savings. Other improvements identified include:

    • for members of APRA–regulated super funds
      • time savings in rolling over and consolidating super accounts as fund members can now complete a rollover in three days or less, compared to an average of 45 to 60 days previously
      • greater ease in rolling over and consolidating members accounts as account consolidations can now be performed online by a member within minutes
      • a reduction in unnecessary accounts and the recovery of lost and unclaimed monies which has led to a reduction in lost member accounts by nearly 90% in the last six years
      • stronger protection of a member’s retirement savings, through reduced fees from consolidations and faster allocation of money into their accounts
       
    • for an employer
      • less processing time for completing contributions, with an average 70% time-saving and $400 million in ongoing efficiencies
      • simplification in sending contributions through a single channel, eliminating interactions with between 15 to 30 funds for a typical business with 60 employees
      • a reduction in rework with improved tools and processes helping to get data right at the source.
       
    • for APRA–regulated super funds
      • the transition to digital rather than manual transactions for contributions and rollovers with digital now accounting for over 95% of all transactions
      • widespread automation of transactions through use of straight-through processing with automation rates now in the vicinity of over 85% for contributions and over 95% for rollovers
      • improved quality of key data holdings – in particular, of member details from compulsory use of TFNs and new data validation services.
       
    End of SuperStream improves the experience for fund members, employers and super funds feature

     

      Last modified: 30 Oct 2017QC 53663