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.