SuperStream is a government initiative introduced to strengthen superannuation in Australia by ensuring back office processes are efficient across the industry.
Streamlining rollover transactions are one of these initiatives, including the introduction of electronic rollovers.
Fund providers have changed their systems and processes to effectively manage electronic rollovers in and out to ensure the required 3 day processing timeframe for electronic rollovers can be met.
What does this mean for employees/members?
The reduction in processing times from 28 days to 3 days for electronically submitted rollovers will see superannuation moved to their destination very quickly. This means faster consolidation, potential savings on fees and less time out of the market.
What does this mean for employers?
This makes it possible for employers to send contributions to all funds in one standard electronic format. In the future, employers will no longer need to provide this information to separate funds in different formats.
SuperStream will make processing super guarantee payments easier and result in:
– Fewer data-quality issues;
– Simpler, more consistent contribution process;
– Fewer lost accounts and less unclaimed money;
– Faster processing of employees’ money into their super accounts;
– Lower overall processing costs.
Employers with 20 or more employees will begin using the SuperStream standard from 1 July 2014. Employers with 19 or fewer employees will begin using SuperStream from 1 July 2015.