From 3 November 2014, employers with 20 or more employees will begin using the new Data and Payment Standard, also known as SuperStream, to make superannuation contributions to their employees.
The Data and Payment Standard will streamline the process for many employers when making contributions. It provides a simpler, consistent method of preparing contributions. In most cases, it will provide a single channel for interacting with multiple super funds.
Employers will make super contributions electronically. The contribution data is sent electronically in message format to the fund and the contribution payment is sent electronically through the banking system.
It will also reduce payment processing costs as the manual methods have been removed. Super funds and its members will also benefit from processing contributions faster and improved data quality.
The ultimate goal is to lead to better retirement outcomes for all Australians including:
-reduced administration costs
-higher lifetime savings
-fewer lost accounts
The data message and payment will be linked by a payment reference number which will enable reconciliation at the receiving fund.
Most of the key components required for this change, including e-commerce infrastructure and software solutions, are currently being developed, trialled and implemented.