‘Jury still deliberating’ on success of SuperStream for SMSFs
While the latest version of SuperStream has resulted in faster processing of rollovers for many SMSFs, there are still some lingering issues causing delays, according to SMSF services firm Accurium.
In an online article, actuarial certificate provider Accurium noted that the SMSF sector is now just over six months into the compulsory requirement to conduct rollovers to and from the fund via SuperStream.
“We continue to be contacted and made aware of issues that are causing delays and frustration when trying to roll over member benefits both to and from the SMSF,” Accurium said.
“This is on top of the issues that existed pre compulsory use of SuperStream for rollovers and mostly continue today.”
Accurium said the goal and objective of extending the SuperStream requirements to SMSFs is admirable, and where the system operates correctly, it does achieve the touted benefits of rollovers being “processed faster, more efficiently and with fewer errors”.
“However, for some SMSFS the jury may still be deliberating,” the actuarial firm noted.
One of the ongoing issues for some SMSF, it said, is with obtaining an ESA to facilitate the rollover.
In order to comply with the rules and enable rollover data to be sent electronically between the funds via SuperStream, an SMSF must have an electronic service address (ESA) that offers SuperStream rollover services, Accurium explained.
Other than the three major SMSF administration and compliance platform providers, there is only one provider that is SuperStream rollover-capable that does not require the fund to use an administration platform, the firm noted.
The other non-administration platform provider, Australia Post, is still in the process of becoming SuperStream-compliant for rollovers, with its status still listed as “in progress”.
“So, the problem has been that unless the SMSF is administered on one of the three major administration platforms, there is currently only one SuperStream rollover capable ESA option, at a cost,” it said.
Accurium noted that the ATO has implemented temporary relief to allow rollovers between SMSFs and from an SMSF to an APRA-regulated fund to occur outside of SuperStream where the SMSF has had difficulties in obtaining an ESA.
The firm reminded any SMSF trustees encountering difficulties in obtaining a SuperStream rollover-capable ESA that they must first contact the ATO to obtain agreement from them to perform the rollover outside of SuperStream.
“With the benefit of hindsight, maybe ensuring that all SMSFs would be catered for with a SuperStream rollover solution before the compulsory start date would have been a good idea,” said Accurium.
“Let’s hope that this issue is resolved well before the first anniversary of SuperStream rollovers for SMSFs being compulsory.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
