Small businesses using the Australian Taxation Office’s (ATO) SuperStream system are saving around 70% of their time previously spent on employee superannuation processing. Guests at a recent Breakfast at BMO were told this equates to about $390m in savings per annum across the whole employer population.
The new ATO system requires all employers to submit Superannuation Guarantee data and payments electronically. Employers with more than 20 employees have been using the system for nearly a year now, but those with less than 20 employees will need to be using the new procedure by 30 June.
“The new standard ensures that the data and payment details sent electronically to the funds are able to be reconciled quicker and allocated to the employee’s funds more accurately. Hopefully reducing the amount of unclaimed super currently in the system at the same time” Mr Gee Kee said.
Mr Gee Kee also stated that while a few local business owners have expressed some confusion about the requirements, many are in the process of implementing the system.
“We thought it was important for employers in our region to be given all the facts to help guide them in the right direct and address any issues about the program, which is why it was important for BMO to hold this event.”
The free seminar for small businesses was held at BMO Business Centre on 20 May and included a presentation from ATO Governance Leader for the SuperStream Program, Mark Stockwell, who explained to guests the key features of the new system.
“About 500,000 employers around Australia are already seeing real benefits, with many reporting super now takes minutes and not hours.
Savings differ by size of employer, proportionately they tend to all be in the 70% time savings range for each contribution period” Mr Stockwell stated.
The ATO are conducting free webinars over the next month, designed to help employers understand and prepare for SuperStream. Register at www.ato.gov.au/superstream.