Super Stream is a treasury initiative set up around 2010 and started in 2012. Its stated purpose is to make it more efficient and reduce lost super. From 1st July 2016 all employers’ self-managed super funds and APRA super funds are required to use it. You are expected to pay your super to a clearing house so it can go to your fund.
This puts a third person between you and your super, or your employees’ super.
In actual fact, it’s stated as free, but only for two years. We would imagine after that; people will have to pay for what they once did themselves. It’s not likely this free service will go on without cost being recovered. This will just allow banks or financial instructions access to your money for however long it takes to clear. Super Stream has clearing houses were you need to register your details to use it.
Initially, there appears not to be fines for non-use or late payment, although the law allows for it and it will only be a matter of time before both are levied, indeed they might start right away.
This is a scheme that will create:
- a third person that doesn’t exist now as you can pay super direct
- extra process and more red tape for small business
- fines for late lodgement, which exist now but are hard to police due to lack of information.
On the positive, it will lessen lost super which will benefit employees.
It’s just another cost on business.
Terry Murphy CPA BBus DFP, Director of TaxAssist Accountants
Date published 31 May 2016 | Last updated 31 Jan 2025
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