Keep up to date with an abundance of compliance moments.
The implementation dates and relative complexity of compliance, indicates a growing need to simplify the good intentions of the Government’s new rules. That’s why our wrkr is creating a seamless digital hire to retire experience for all parties involved.
The ATO has introduced SuperStream Rollovers compliance for self-managed super funds (SMSF). This is a big change in the way you can help your SMSF customers comply and take advantage ofa more digital and streamlined way to manage their SMSF.
From 1 October 2021, SMSFs and their members will need to use SuperStream to rollover superannuation to or from their SMSF.
- Rollover funds to their SMSF, such as transferring money from any other super fund to their SMSF.
- Rollover funds from their SMSF, which includes when you are winding up an SMSF.
- Receive and action certain release authorities like Division 293 and excess concessional contributions.
Fund stapling (1 November 2021)
Stapling essentially means super accounts follow the worker, ostensibly to limit the risk of multiple accounts and unnecessary fee duplication.
It requires employers to search for a worker’s stapled fund through the ATO’s online portal if they do not choose a fund of their own. Key persons involved (resource manager/recruiters/payroll) must possess the relevant ATO Relationship Access Manager (RAM) permissions under this reform.
As employers re-engineer their internal processes and systems to search for each new worker’s existing fund, they will need to shoulder the additional administrative burden. To ensure preparation for Super Stapling, employers should contact their payroll provider or default superfund to discuss how they will support compliance by 1 November 2021 and save time and money in the process.
Single Touch Payroll Phase 2
In the 2019–20 Budget, the Government announced that Single Touch Payroll (STP) would be expanded to include additional information.
The expansion of STP, also known as STP Phase 2, will reduce reporting burden for employers who need to report information about their employees to multiple government agencies. It will also help Services Australia’s customers, who may be your employees, get the right payment at the right time.
The mandatory start date for Phase 2 reporting is 1 January 2022.
The start of FY2023 will also see workers no longer required to meet the monthly minimum income threshold ($450) to be eligible to receive superannuation guarantee payments from their employers. This means an expanded workforce receiving super contributions.
For employers, this reform adds compliance pressures, seeing that they must obtain super details of current employees, much in the same way as onboarding new workers, who previously were not eligible under the threshold. Digitising the process will ensure there is no productivity loss, especially for businesses who use a high number of casual or transient workers.
Risk of non-compliance with Fair Work.