Guide released on SMSF messaging providers’ register

The ATO states trustees can also update the ESA by lodging the paper form Change of details for superannuation entities (NAT 3036, PDF 1.01MB). 

Time limits may apply to an ESA subscription so it is important to make sure it is active and continues to provide the functionality required.

An SMSF can only have one ESA address recorded with the ATO which means if a trustee requires both contributions and rollovers/release authorities, then they need to select a provider that offers both services.

The ATO  stipulates it does not recommend or endorse any of the listed SMSF messaging service providers but only provides the register for information, subject to terms and conditions.

If an SMSF is experiencing issues getting an ESA to make a rollover from its fund or receiving a rollover from another SMSF, they are advised to contact the ATO on 131020 and select fast key codes 4 then 1 to discuss their options.

The ATO will check if the provider has rollover services with the SMSF messaging provider.

If it does do, the ATO will ask the SMSF trustee to contact them for further assistance. If they don't, the trustee can request to undertake the rollover using the paper-based process.

The ATO will confirm over the phone that the SMSF can use the paper process (originally for rollovers before 1 October 2021) and make a record of the approval.

Trustees should let their SMSF auditor know they got our approval to make the rollover using the paper process and provide them with the reference number from the call.

The auditor will not be required to report a contravention to the ATO where the trustee has received the ATO’s approval to make the rollover this way.

This is a temporary measure and will no longer be available from 30 June 2023. After this date, all rollovers must be done electronically unless certain exceptions apply.

If trustees use a paper form to make a rollover on or after 1 October 2021 without first seeking our approval, this is a reportable breach of the rules. When lodging an Auditor/actuary contravention report, the auditor should tell the ATO the reasons why the rollover was conducted in this way. The ATO will take this into account when risk assessing the fund and deciding whether to apply penalties.

If the ATO can see the SMSF trustee had issues getting an ESA, it is unlikely to impose penalties for non-compliance.

The process is available only for rollovers from an SMSF to an APRA-regulated fund and between SMSFs. If a trustee has issues getting an ESA to make a rollover from an APRA-regulated fund to an SMSF, contact the APRA fund directly.

The ATO will maintain the register subject to the following terms and conditions:

• It is a public register of SMSF messaging service providers who provide publicly available information for inclusion in the register on a voluntary basis.
• Service providers whose details are included in the register warrant that they are providing a messaging service for the express purpose of enabling regulated super entities to comply with their obligations under the Superannuation Industry (Supervision) Regulations 1994.
• The Commissioner of Taxation reserves the right to remove or modify a service provider’s details at any time.

The ATO warned that while it makes reasonable efforts to ensure the register is made available, it makes no guarantees to provide continuously available access to it or access which is uninterrupted or fault-free.

It also stated while it takes all reasonable care to ensure information in the register is accurate, changes in circumstances may occur at any time and affect accuracy.

It does not provide any warranty, make any representation as to, or accept responsibility for, the accuracy, correctness, reliability, timeliness or completeness, now or in the future, of any information provided via the register.