SuperStream: guide for businesses
What is SuperStream?
SuperStream is an electronic payment system that Aussie employers use to make superannuation payments. If you have employees, you must register for SuperStream.
How does SuperStream work?
SuperStream-compliant providers and clearing houses assign a unique payment reference number (PRN) to each payment to ensure the proper routing of each payment and allow employers to make all super payments in a single transaction.
How do I comply with SuperStream requirements?
Determine whether you’re obligated to pay super
If you have employees, you’ll likely have to pay super. The only exception is that you don’t need to pay super for an employee who is younger than 18 and works less than 30 hours a week.
Collect and validate employee information
To manage your super contributions for employees, you’ll need their tax file number, full given name, date of birth and super fund details. The ATO recommends validating this information.
Offer employees a choice of super
Super choice form
Employers must give eligible employees a standard super choice form within 28 days of their hiring date. Employees may request a super choice form at any time, although employers don’t need to accept a super choice form more than once per year.
Stapled funds information
A stapled fund is an existing super fund that’s linked to workers and follows them throughout their careers, unless they choose otherwise. If employees don’t specify their super choice, pay into their stapled fund if they have one, their prescribed fund if their Award or Enterprise Bargaining Agreement nominates one, or into your default option if neither scenario applies.
Know how you’ll calculate super
As of July 2023, the minimum super contribution amount for employers was 11% of an employee’s ordinary time earnings (OTE). That amount will increase gradually to 12% by 2025.
If you have a handful of employees, calculating super should be easy. However, as you take on additional staff it may be time to invest in a payroll system to do your super and other payroll calculations for you.
Choose an electronic payment method
Automate payments with payroll software
If you use modern, SuperStream-compliant payroll software, you can automate your SuperStream payments and never have to worry about missing a payment deadline.
ATO clearing house for SMBs
Businesses with no more than 19 employees and an annual aggregated turnover under $10 million may use the ATO’s Small Business Superannuation Clearing House to pay super.
After you provide instructions on the allocation of each employee’s funds, you’ll pay your total contributions to the ATO clearing house, and the clearing house will distribute the funds accordingly. The ATO considers your super contributions “paid” on the date the ATO clearing house receives them.
Other clearing houses
If you want to use a SuperStream clearing house to make super payments but don’t qualify for the ATO’s free service, you’ll need to find a clearing house company. These businesses charge a nominal fee for each super payment.
Note that when making payments to a commercial clearing house, you need to allow time for payment processing — super funds won’t mark a contribution as paid until they receive it from the clearing house.
Make direct payments to the super fund
You may be able to make online payments directly to a super fund, if it’s one of the larger funds and SuperStream compliant.
Outsource to a payroll provider
If you’re already outsourcing payroll, it may make sense to check your provider is SuperStream compliant and have them handle your super payments (although that service may require additional fees).
Benefits of SuperStream compliance
MYOB’s accounting software comes with SuperStream compliance built in, so you can:
Make all super contributions with one payment
Save time with automated payment processing
Validate employee data to prevent data-mismatch errors
Quickly produce audit-ready proof of timely super contributions
With MYOB, it’s easier than ever to meet your super obligations. This gives you back the time to focus on what’s most important: building your business.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
MYOB is not a registered entity pursuant to the Tax Agent Services Act 2009 (TASA) and therefore cannot provide taxation advice to clients. If you have a query concerning taxation including filing your BAS return or annual tax statements then you should consult with your accountant or other registered tax adviser.