In a recent alert, the ATO said that it has recently received an unexpectedly high volume of manual verification requests, causing a delay in processing these requests for SMSFs.
The ATO had first identified some funds were sending manual verification requests after the SVS returned “not verified” responses.
“We are endeavouring to process these requests as soon as possible,” the ATO said.
“Please do not send multiple requests for the same member as the original request will be processed.
“On 18 October, the manual verification template will be updated to make the ESA and bank account details fields mandatory.
“Until then, when you do not provide these details in the template, the ATO cannot verify them, and the response you receive will be based on the information you have provided only.”
The ATO reminded funds that the SVS is the mandatory electronic service that must be used to verify SMSF details prior to making a rollover to an SMSF.
Manual verification can only be requested in the following circumstances where a fund does not hold the member’s TFN and the SVS is not operational or available for an extended period (more than three business days).
“If you receive a ‘Not Verified’ response from the SVS, refer to the SVS Business Implementation Guide on how to manage those responses. A manual verification request is not required to confirm outcomes already received via the SVS,” the ATO explained.
The SVS is a web service that provides authorised entities (such as APRA Funds, their administrators, and SMSFs) with the ability to verify SMSF details prior to making SuperStream transactions to SMSFs.
The SVS verifies the SMSF status (Complying or Regulated) that the TFN of the individual is associated with the SMSF and no verified date of death exists for the individual/SMSF member associated with the SMSF along with the SMSF bank details held by the ATO and the electronic service address (ESA) held by the ATO.
In addition, the SVS will return the certification status of the DSP of the SMSF; this will enable the transferring fund to determine how they can interact with the receiving SMSF.
This comes as the ATO had recently addressed several technical issues which had emerged close to the SuperStream start date that had previously affected the onboarding process for the rollover implementation for SMSFs.
The ATO at the moment are already inundated with processing SMSF ABN applications stating it could take up to 56 days now. They should have delayed this until the staff were available.
You can request the bank increase the limit given you are transferring a large amount, we used to do it all the time. It saves so much time not having to get a cheque drawn up and cleared, plus the amount of times we had to reissue cheques because the trustee didnt do as they were instructed you wouldnt believe.
It would be handy if the ATO provide a list of stand-alone service providers for this, like they did with STP.
Do you mean this list – https://www.ato.gov.au/Super/Superstream/Self-managed-super-funds/electronic-service-address/register-of-SMSF-messaging-providers/
Agree. Still a place for cheques which work well and get around cash transfer limits.
People are probably panicking with a 3 day turnaround time. The ATO really should have phased this in and given longer deadlines to start with. (Aspirational targets) There are always going to be teething issues, and obviously the ATO are experiencing their fair share!
The ATO has plenty of overtime budget to pursue taxpayers, but none it seems to provide an essential service to those taxpayers.
Can one of these ATO geniuses please explain how a SMSF can pay a rollover by direct debit when all the major banks have a $20K daily direct debit limit on bank accounts???
Excellent point. I have never actioned an SMSF rolllover to another fund other than by cheque.