Compliance Update: Self-managed Super Funds

Self-managed Super Funds

Self-managed super funds (SMSFs) must be able to receive employer contributions and the associated data electronically using the SuperStream standard.

SuperStream offers the following benefits for SMSFs:

• A more timely and reliable flow of payments and information about contributions

• An electronic record to support your accounting and tax obligations (including your SMSF annual return)

• Fewer data and payment errors.

Next steps:

• Obtain an electronic service address to receive contribution data

• Inform employers of your SMSF's ABN, bank account details and electronic service address.

Exemptions

Your SMSF doesn't need to use SuperStream if it doesn't receive any employer contributions, or the only employer contributions are from a related-party employer. For example, if you're an employee of your family business and your super guarantee contributions go to your SMSF, these contributions are exempt from the SuperStream standard.

SuperStream also doesn't apply to:

• Personal contributions made by members

• Rollovers to or from an SMSF

SMSF SuperStream FAQs

What happens if the electronic service address provided to my employer is not active?

If your SMSF’s electronic service address is not active, your super contributions may not reach your SMSF and might be redirected to your employer’s default fund. This is because the SMSF messaging provider is not expecting to receive a contribution message for your SMSF, and therefore the contribution message will be rejected.

The employer will receive an error message and is required by law to obtain accurate information for the SMSF.

If this occurs, your employer may ask you to complete a superannuation standard choice form. If, after 28 days, you don't provide the completed form back to your employer, they can reallocate your super contributions to their default super fund.

What if my SMSF doesn't have an ABN?

If your SMSF doesn’t have an ABN, you can register at www.abr.gov.au

All SMSFs require an ABN to receive contributions employers send using SuperStream. The ABN is used as the super fund identifier to ensure data messages reach the correct fund.

What if I establish a new SMSF and don't provide my employer with the necessary information in the standard choice form?

If you don't provide your employer with all the required information in the standard choice form, your employer doesn't have to accept the form.

This is because your employer may not have all the information they need to send contributions in accordance with the SuperStream standard.

If your employer doesn't accept your standard choice form, they may make contributions to their default fund to ensure they comply with their super guarantee obligations.