Changes to SuperStream deadline creating confusion for SMSF sector
The announcement in the budget that the deadline for the SuperStream changes would be deferred has created confusion about when SuperStream will actually commence and when systems will need to be updated, says an SMSF services provider.
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.
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.
