Treasury has released a Stronger Super exposure draft that could result in superannuation data payment standards being mandated for superannuation entities and employers.
Details of the exposure draft were released to the Stronger Super website late yesterday.
The draft explanatory memorandum is in line with the government’s commitment to improve the administration and management of super accounts through the SuperStream reforms, a statement from Treasury said.
As part of the proposed changes, the reform would amend the Superannuation Industry (Supervision) Act to provide the commissioner with the ability to issue mandatory superannuation data and payment standards.
“The schedule enables superannuation data and payment regulations to deal with payments and information related to superannuation transactions and reports,” the exposure draft said.
The schedule also introduces a new penalty framework to ensure employers and trustees of superannuation entities comply with the superannuation data and payment standards.
“The commissioner will administer an administrative penalty regime that will apply to employers, self-managed superannuation funds (SMSFs) and APRA-regulated superannuation entities when reporting to the commissioner,” it said.
“APRA will administer an infringement notices regime that will apply to APRA-regulated superannuation entities.
The schedule will also provide the regulators with the power to give directions to superannuation trustees and employers in certain situations where there is reason to believe contraventions of the super data and payment regulators have occurred or are likely to occur.
At present, there is no mandated data, payment or transmission requirements for transactions within the superannuation system (apart from some specification of reports and forms).
“As a result the superannuation system is dominated by paper based transactions that are inefficient in both processing costs and the time taken for transactions to occur and superannuation to be deposited into member accounts,” the draft said.
“The implementation of data and payment standards will allow participants in the superannuation system to communicate by using standardised business terms in a consistent and reliable format, while electronic transmission (using agreed transport and security protocols) will allow for a more automated and timely processing of transactions with fewer errors.
“This will result in improved efficiency (particularly the processing of contributions and rollovers by superannuation entities), an easier system for employers to use, fewer lost accounts and more timely flow of money to member accounts.”
