‘Significant event’ for SMSFs as regulations locked in
Regulations to extend the operation of SuperStream to cover SMSF rollovers have now been made and are being heralded as a win for the sector.
In July this year, the government has released draft regulations to amend Superannuation Industry (Supervision) Regulations 1994 in order to extend the operation of SuperStream to cover SMSFs.
SuperConcepts’ Peter Burgess said these regulations have now been made and will come into effect on 30 November 2019.
“The gazetting of these regulations last Friday marks a very significant event for the SMSF sector. I am sure every SMSF practitioners has at some point experienced the frustrations of rolling over funds to an SMSF,” explained Mr Burgess.
“From 30 November 2019, waiting weeks and even months to roll funds from an APRA regulated funds to SMSFs will be a thing of the past. Under the SuperStream standards, subject to some limited exceptions, rollovers need to occur within three business days.”
Mr Burgess said if trustees have not yet provided the ATO with the fund’s ABN, bank account details and internet protocol address, they will need to do so at least 10 business days before the fund receives the rollover.
“In my view, this is a small price to pay to ensure the rollover occurs quickly and securely,” he said.
“In another win for the SMSF sector, the final regulations essentially retain the existing SuperStream carve out for non-concessional contributions made by a member and employer contributions made by related employers.”
This means it will not be necessary for the trustees to provide the fund’s ABN, bank account details and internet protocol address to the ATO before these types of contribution can be made, he explained.
“The requirement in the draft legislation for this information to be provided to the ATO before any contributions could be made was, in my view, overkill as many SMSFs receive non-concessional contributions and contributions from related employers directly from members and other parties for whom there is no real need to use the SuperStream arrangements.”