Author: Emma Partenza, Manager, TAG Financial Services
SuperStream is an electronic messaging service where data is sent electronically within the superannuation industry. SMSFs currently utilise SuperStream for its members who are in receipt of superannuation guarantee contributions from their employer (other than a related party employer).
What’s new?
From 1 October 2021, it will be compulsory for SMSFs to also use SuperStream for rollovers of member’s superannuation benefits either into or from an SMSF. Just like superannuation guarantee payments, it provides administrators with an electronic record to support the transaction whilst enabling faster processing of all rollovers.
Where a SMSF is not registered for SuperStream, rollovers will not be able to be undertaken manually – paper forms and cheques can no longer be used.
How will it work?
SMSFs will require an electronic service address (ESA).
For TAG SMSF clients, we will be registering funds with an ESA for those that haven’t required one until now.
Requesting a rollover
The member will need to request partial or full transfer of their superannuation benefits using the ATO form NAT 75359; or alternatively, via their MyGov account.
Rollovers out of a SMSF must be made from the fund within 3 business days of receipt of the rollover request.
For TAG clients, trustees must advise us as soon as possible after receiving such a notification to rollover benefits, due to the strict timeframes in which to process this. Where there are illiquid assets, it would be best to speak to us prior to making any rollover request via a member’s myGov to avoid any issues of non-compliance.
Implications
Where the fund’s lodgements are not up to date, the fund’s registration details are removed from the ABR. Rollovers to and from an SMSF will become affected in this instance and rollovers will not be able to be processed. Trustees must ensure lodgements are first up to date. It can take up to 6 weeks for the ABR to be reinstated and the fund’s ESA to become active again.
New ATO alerts
Trustees will commence to receive alerts (email or text message) notifying them of a rollover request. This further extends the ATO’s alert system which has operated since February 2020 upon lodgement of the fund’s annual return. To notify the trustee that certain changes have been made to their fund (yes, lodgement of a document is a change to the fund).
The extension to rollover requests means trustees will receive notification when the fund uses the SMSF verification service to verify the SMSF’s details prior to making a rollover. Such alerts are to safeguard the member’s retirement savings and reduce the risk of fraud or misconduct.
If you have any questions please contact us on 03 9886 0800 or via email.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2021. Please do not reproduce without the expressed written consent of the author.