In this guide
Since 1 October 2021 self-managed super funds (SMSFs) must use the SuperStream standard for rollovers into and out of their funds, along with employer contributions into SMSFs. It may seem like just another administrative task for the new SMSF trustee to add to the list, but once the initial set up is complete, it should save loads of time over the long term.
What is SuperStream?
SuperStream is a data and payment standard introduced in 2014 for super funds. It was designed to make it easier for funds to collect employee super guarantee (SG) payments from employers. Prior to its introduction, some employers were still making SG contributions for employers via cheques in the mail. Not only could these cheques get lost, but super funds reported they sometimes had difficulty matching the cheque to a member, as little explanatory information came with the contribution.
In implementing it for SMSFs, the ATO said SuperStream would provide a more timely and reliable flow of payments and information about contributions, rollovers and certain release authorities.
It also provides funds with an electronic record to support accounting and tax obligations (including the SMSF annual return) and it should result in fewer data and payment errors.
An SMSF needs an electronic service address (ESA) to receive SuperStream data from employers and other funds.
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What is an ESA and why do I need one?
This is where it gets technical. An ESA is an alias that represents the uniform resource locator (URL) or internet protocol (IP) address of a messaging provider.
“It ensures you meet all technical requirements for interacting electronically across the super network. An email address is not an ESA,” the ATO says.
If you have just established your SMSF then you will need to register with an SMSF messaging provider to receive an ESA for both contributions and rollovers if you are rolling funds into your SMSF.
The ATO lists the following SMSF messaging providers (which it neither endorses nor recommends).
If you use an administrator, they may be able to provide you with an ESA. The following SMSF administration service messaging providers are only available to existing clients:
SMSF messaging providers – restricted to existing SMSF clients of the listed service provider
| Provider | Contributions | Rollovers and release authorities | |
|---|---|---|---|
| esuperfund | SuperStream@esuperfund.com.au | Yes | Yes |
| netwealth | contact@netwealth.com.au | Yes | No |
| The Super Group | info@supergroup.com.au | Yes | Yes |
| SuperChoice Services Pty Limited | smsf@superchoice.com.au | Yes | No |
Am I exempt?
If the SMSF only receives super guarantee payments from a related party employer (for example a family business) then you will not be required to use SuperStream for contributions or rollovers.
But remember, if your family business has employees who are not in the family SMSF your business will need use SuperStream to make their super payments.
Managing director of SMSF specialist Sonas Wealth, Liam Shorte, says it may pay to have one anyway.
“We’ve just had a case with a rollover where we were rolling some money from an SMSF to an industry fund, but we couldn’t do it because we didn’t have an ESA,” he says.
“When you’re trying to move from that fund [an SMSF] to anywhere else you must have an ESA in place.”
What do I do next?
If you are a new SMSF trustee, once you have your ESA and have confirmed that your messaging provider will provide both contribution and rollover services, you need to update the ATO with the information.
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Your SMSF will also need an Australian Business Number, which you can apply for via the Australian Business Registrar. The ATO needs to be updated with this information as well.
Finally, you need to make sure that all your other information is updated and current with the ATO, including your SMSF’s bank account details.
You can do this yourself via myGov and ATO online services, via your tax agent or by contacting the ATO directly.
The bottom line
The SuperStream requirements may seem like an extra administration burden initially, but they should make your life as an SMSF trustee much easier by facilitating faster rollovers and contributions with less potential for error.
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