SuperStream, Superannuation, Clearing Houses - what does it all mean?

1 November 2024

SuperStream and clearing houses – navigating these terms and the complexities of superannuation can be challenging. With the introduction of SuperStream and the use of clearing houses, understanding these concepts is important for ensuring compliance and efficiency in managing super contributions for your employees.

What is SuperStream

SuperStream is an Australian government initiative designed to improve the efficiency of the superannuation system. Introduced in 2014, SuperStream requires employers to make superannuation contributions electronically in a standardised format. This means that both the payment and the associated data are sent electronically, ensuring that contributions are processed quickly and accurately.

The primary goal of SuperStream is to streamline the superannuation process, reducing the administrative time for employers and minimising errors. Sending your contribution in a SuperStream compliant system helps ensure you meet your obligations, and your employees receive contributions promptly.

The role of clearing houses

A clearing house is an online service that simplifies the process of making superannuation contributions. Instead of making separate payments to multiple super funds, employers can make a single payment to the clearing house, which then distributes the contributions to the respective employee’s super account.

The infographic below demonstrates the clearing house process:

As an employer, you will provide both contribution details and payment into your chosen clearing house which will then send details and payment onto your employees’ separate super funds.

How to choose a clearing house?

There are different types of clearing houses available, and you may consider cost, convenience, reliability (including payment processing times) and security when choosing a clearing house. Employers should also check that the clearing house is compliant with SuperStream – check the ATO’s guidance on three simple steps to check here.

SuperStream and clearing houses play a vital role in simplifying the superannuation process for you and your employees. By streamlining payments and meeting your SuperStream requirements, helping reduce the administrative burden and improve the accuracy of contributions.