SuperStream was originally intended to commence for SMSFs on 30 November this year and will enable SMSFs to receive digital rollovers through the SuperStream system.
However, the government announced the commencement date for this would be postponed till 31 march 2021, due to other measures it plans to implement.
SuperConcepts executive manager of private wealth Graeme Colley said the SuperStream legislation will make things easier for individuals who want to roll benefits over between APRA-regulated funds and SMSFs as it will speed up the process.
“It’s expected the changes will reduce compliance costs, remove manual handling and cut transaction times,” he said.
Under the amended law, Mr Colley said that from 30 November 2019, SMSFs will be required to obtain a digital address and provide it to the ATO prior to receiving a contribution (other than a contribution from a member or a related-party employer) or a rollover from another fund.
“With the law being in place but the 2019 budget announcement deferring the commencement of the changes, administrators and other superannuation professionals are confused about what needs to be done,” he explained.
“They are trying to work out whether the changes to their systems are necessary this year, or to do nothing and wait until the regulators or government clear up the confusion.”
Mr Colley said there is a real need for an official announcement to save the SMSF sector from unnecessarily allocating valuable staff resources and incurring costs now rather than later to implement the required system changes.
