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Hi there. This video will inform you of your obligations
under the new data and payment standard, and provide some scenarios with options for you
to consider.
We'll hear from some employers about their current circumstances and what the introduction
of the new standard has meant for them.
But first, what is the Data and Payment Standard and what does it mean for you.
The Standard will streamline the super contribution process resulting in:
• a simpler, more consistent way of making contributions
• electronic data and payments in a common format
• lower overall processing costs • and a simple single channel for sending
contributions
So when will this affect you?
Businesses with 20 or more employees you will start using the standard from the 1 July 2014.
Businesses with 19 or fewer employees have until 1 July 2015 before they start using
the standard.
Kelly Services Australia We're a staffing and consulting firm. Our
Australian operations, we recruit for multiple clients across multiple industries across
the country. In Australia, we pay approximately 2000 employees each week. We have 170 permanent
employees but also we pay into approximately 150 superannuation funds per month. The new
data standard will benefit our business in a few ways. First of all other than the obvious
it will save time each month basically making it a more efficient process to process superannuation
payments. It will be easier and simpler to process choice of funds. We are going to be
able to make quicker payments. It's going to be less time focusing on errors and just
dealing with superannuation funds on a daily basis. So effectively for my team, more time
to focus on supporting the business.
*** Atlantice Airways I work for *** Atlantic Airways. We are
an international airline. We are a branch office here in Sydney and we've got just over
50 employees. We have one default fund and we also have19 other funds that we pay into.
So with just over 51 employees, 19 funds it's a lot. Yep.
We previously did send off cheques, EFTs individually, and make 19 different payments, however now
what we do is we go through the clearing house, we've got one EFT payment and that makes it
a lot easier.
Decided to go with a clearing house solution knowing that they were looking on behalf of
all employers and they know what the data standards are and how we are going to be able
to work towards the best possible outcome and we have complete faith that they are working
on this and they've got enough staff so we can get on with the job
In preparation for the changes, *** Atlantic has engaged a clearing house to simplify how
they process contributions. *** Atlantic will now need to speak to their clearing house
to ensure that they will have a solution in place to meet the standard on their behalf.
Hemsley Lawyers Pty Ltd. Yeah we're an integrated law and accounting
firm. We work in tax, commercial property and superannuation. We've got 5 staff, two
partners just advising people how best to deal with those issues.
At the moment we make contributions directly to the staff, relevant staff member superannuation
funds. So when someone starts up we just ask them what fund they want to use. We've now
found as we are expanding everyone is using a different fund. So all of our five employees,
we've got three funds and of the two partners we've both got our own self-managed super
fund.
There are three options we are looking at right now. The first one is the small business
clearing house. And the reason we like the clearing house is because we've got so many
funds that we need to pay it's easier just to make one payment to the small business
clearing house for them to organise it. The other one we are looking at is to just continue
paying directly to the funds. We've already started doing that for our employees we may
as well keep doing it but that doesn't have longevity cause when we get a new employee
we you know, would lose the benefit of that.
And the third method would be through our accounting software. I've been told by a very
reliable source that our accounting software might be developed in a way which allows us
to make payments directly through that software and if we could do that, that would be great
as well.
Now I think with the standard what I've been hearing is that it will allow the situation
where the information that you provide is uniform across all the funds and I think that
will make it a lot easier because at the moment, each time we contact a fund they need different
information and it adds quite a bit of compliance for a small business and we have a lot of
funds and having a uniform standard is really going to help us.
To help make using the new data standard as easy as possible the ATO is producing two
new online validation services which will reduce the chance of errors when processing
contributions.
The Fund Validation Service will enable you to validate fund details. The Employer TFN
Integrity Check service will allow you to validate employee details.
These services will be available from the 1st of July 2014.
Now is the time to get ready.
Ultimately penalties could apply if you don't meet the standard. However the ATO's initial
focus will be to educate, assist and support employers through the change.
The new standard will provide a simple, single channel process for sending contributions
electronically. One log-in, one form, one payment method. It will also ensure that employees
get their contributions in a timely reliable way.
If you'd like to learn more, check out the website below. Alternatively talk to your
default fund, payroll software provider, clearing house or other service provider such as your
accountant, bookkeeper or payroll bureau.
payments service available to small business employers with 19 or fewer employees, to help
We allow employers to pay their superannuation contributions in one transaction to one single
Fast. Efficient. Easy.