27 May 2014
Common sense changes recognise the challenges of SuperStream implementation: ASFA
The Association of Superannuation Funds of Australia (ASFA) welcomes the announcement of an extended timetable for the implementation of the SuperStream contribution standards.
Under the new timetable, the industry will be able to better manage the risks and costs associated with implementation, and ensure all stakeholders are engaged accordingly.
These changes, which were sought by ASFA, recognise and address the significant implementation risk associated with moving every employer in Australia to a single, industry-wide contribution standard.
By permitting funds to nominate the date they will be data-standards compliant, super funds will avoid the need to implement costly temporary arrangements, a cost that would have been met by fund members.
ASFA CEO Ms Pauline Vamos says while the changes are welcome, greater collaboration is vital to ensure the smooth implementation of the SuperStream reforms.
“Superannuation funds, employers and service providers to both groups will need to work together during 2014/15 to manage the movement to the new superannuation contribution payment arrangements.
“However, this change should not be used as a reason to delay. It’s important all providers look to implement the standard as early as possible, so that the return on the industry’s investment can start to flow to all participants in the system. ‘Prepare now, implement early, and avoid the last-minute rush’ should be the mantra of all industry participants.”
Comparison of new arrangements and exposure draft legislative instrument requirements
Superannuation funds will be able to nominate a date between 1 July 2014 and 1 July 2015 as the date on which they will be able to receive contribution messages in the new format.
All funds are required to be able to accept contributions in the new format from 2 November 2014, unless APRA has approved a later commencement date.
If the commencement date is not 2 November 2014 or earlier, then the fund’s commencement date is to be advised to the ATO by 30 September 2014 – no APRA approval will be required.
As part of the advice to the ATO, funds will be required to provide details of their implementation plan.
Funds seeking a commencement date later than 2 November 2014 are required to make an application to APRA for relief. (APRA relief applications are time consuming and costly to prepare and have no certainty of acceptance.)
APRA will provide global relief to funds from the requirement to report, as a breach, their inability to accept contributions data in accordance with the data standards requirements.
The relief will apply until 30 June 2015.
No relief from breach reporting obligation.
For further information, please contact:
Lisa Chikarovski, Media Manager, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.