SuperStream Advisory Council meeting
12 July 2013
Key messages
The Council was pleased to note the collaboration between the Affiliation of Superannuation Practitioners and the industry associations — the Association of Superannuation Funds of Australia, the Financial Services Council, the Australian Institute of Superannuation Trustees, and the Industry Super Network — on the gateway project. Considerable progress has been made.
Work on interoperability is well advanced and there appear to be no issues likely to derail the process. Much work, however, remains to be done. In particular, further work is needed to finalise a governance framework for the SuperStream network.
It is encouraging to see some businesses starting to think about how they will make contributions through SuperStream from 1 July 2014, but more need to do so. Medium and large employers — those who employ more than 20 people — will need to use SuperStream to make their Superannuation Guarantee contributions from 1 July 2014. Preparation will be needed and the Council encourages all employers and their respective service providers (e.g. payroll service providers) to attend to this issue.
Fund readiness for the processing of rollovers through the SuperStream network is improving but risks remain. Funds that are uncertain about their readiness or about the steps that they need to take to prepare to process rollovers through SuperStream are encouraged to contact the ATO on SuperStreamStandards@ato.gov.au. This is now a matter of priority.
All funds need to commit to a transition-in date. The Council notes that a number of funds, including some large funds, have not yet done so. The Council encourages early and active engagement with APRA to discuss alternative dates as required. It notes the potentially serious consequences for the SuperStream system as a whole if funds do not transition-in with a properly functioning and conforming rollover solution.
The Council noted that regulations to require the pass through of contributions from default funds to choice funds are needed as a matter of priority, to provide certainty to employers, funds and gateway providers.