• 6. Superannuation Data and Payment Standard

    ATO Submission

    Subject:
    Superannuation Data and Payment Standard (SuperStream)

    Issue:
    To provide members with details of the progress of the SuperStream Project

    Background:
    As part of the SuperStream reforms, the Data and Payment Standard is being implemented to streamline the super contribution process. Broadly, the standard has four aspects:

    • A standard set of business terms and definitions
    • A standard data message format
    • A messaging services standard which sets out requirements for packaging, transport, security and receipting of messages
    • A standard format for electronic payments

    View/suggested treatment:
    For members information

    Technical references:
    Nil

    Impact on clients:
    From 1 July 2014

    • All super funds, including SMSFs, are required to be able to receive contributions in the new Standard.
    • Large and medium employers (with 20 or more employees) will be required to use the Standard when sending
      contribution to funds, including self-managed super funds.

    From 1 July 2015

    • All small employers (19 or fewer employees) will be required to use the Standard for sending contributions.

    Priority of issue:
    High

    Has this issue been discussed at any other ato consultative forum?
    Not aware

    Presentation information:
    Director Colleen Gibson will provide a presentation on the day of the meeting.

    Meeting Discussion

    Segment Lead (Intermediaries Onboarding) Colleen Colquhoun and Assistant Director Cristina O’Brien attended the meeting for Director Colleen Gibson.

    The Superannuation Data and Payment Standard is being implemented to streamline the super contribution process. The standard has four main aspects:

    • A standard set of business terms and definitions
    • A standard data message format
    • A messaging services standard which sets out requirements for packaging, transport, security and receipting of message
    • A standard format for electronic payments

    SuperStream is a package of measures designed to bring the back office of superannuation into the 21st Century. Its key components are the increased use of technology, uniform data standards, use of the tax file number as a key identifier and the straight through processing of superannuation transactions.

    From 1 July 2014 all super funds, including SMSFs, will be required to be able to receive contributions in the new Standard. All large and medium employers (with 20 or more employees) will be required to use the Standard for sending contributions to funds, including self-managed super funds.

    From 1 July 2015 all small employers (19 or fewer employees) will be required to use the Standard for sending contributions.

    Under the standard, an employer must:

    • Provide a minimum data set in the specified message format using the standard terms and language of the XBRL taxonomy
    • Make payments to each destination fund electronically by direct credit/debit or BPAY
    • Ensure payments and date are linked using a unique payment reference number
    • Meet the minimum performance standards by sending money and data on the same day
    • Respond to fund requests for missing information or queries within 10 days.

    Funds must:

    • Accept contributions in the specified message format
    • Accept payments from employers electronically
    • Meet the minimum performance standards by processing standard compliant contributions within three days
    • Contact employers within 5 days if data is missing or invalid
    • Refund contributions that cannot be allocated to a member within 20 business days
    • Pass through choice contributions (recommended best practice for default or employer nominate funds).

    The ATO will focus on education and support during the first 12 months after each respective mandated date. Support material is being developed and the ATO will be working with associations and industry partners to facilitate adoption of the standards by employers.

    Key messages are being developed and will be published on ato.gov.au. ATO is relying on stakeholders to publish the information on their websites as people don’t always visit the ATO website. Tax agents and BAS agents will receive the information.

      Last modified: 06 Feb 2015QC 39578