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ATO urges preparation for incoming SuperStream changes

ATO urges preparation for incoming SuperStream changes
By Tony Zhang
12 July 2021 — 3 minute read

The ATO has advised SMSF trustees and their professionals the need to start planning for the incoming changeover to the new SuperStream Rollover v3 system.

In March 2021, the ATO had advised that from 1 October 2021, self-managed super funds (SMSFs) would need to use SuperStream Rollover v3 to roll over member benefits to or from their fund. SMSFs will also be able to use SuperStream Rollover v3 for certain electronic release authorities.

In a recent update, the ATO said that SMSFs and professional advisers should start planning for the changeover now so that the fund will be ready to use SuperStream Rollover v3 on 1 October 2021.

“This will impact you as an SMSF trustee and your professional advisers when actioning any of the rollovers into the SMSF and rollovers out of the SMSF,” the ATO said.

This also includes release authorities, for concessional and non-concessional contribution caps, deferred and non-deferred Division 293 payments and First Home Super Saver (FHSS) scheme money for first home purchases.

Speaking in an ATO webinar update with SMSF Association on the changes, ATO’s Rollover v3 project manager and director of superannuation and employer obligations, Belinda Black, said that from this time onwards, funds will need to ensure they can allow rollover requests to be processed as soon as possible and ensure both the SMSF and members’ details recorded with them are up to date.

Funds will need to check with the SMSF messaging provider that SMSF electronic service address (ESA) is or will be SuperStream Rollover v3 enabled from 1 October 2021 and provide those details to the ATO if the fund hasn’t already done so.

They also need to ensure the SMSF has an electronic service address or an ESA that can action and process rollover requests. Funds must also have an ABN and ensure their SMSF has a unique bank account for super purposes and it’s recorded with the ATO.

“By not doing any of these things before initiating the rollover request, it will delay the process,” Ms Black warned.

“When initiating the rollover request, it remains unchanged, SMSFs can still do this via myGov like they can today.

“When there is a rollover from an SMSF, trustees still need to ensure their records are up to date with things like their member account balance so they know how much that they can roll out.

“But now they’ll also have additional obligations and steps that must be taken, including validating the receiving fund’s information, and this is a new step. These requirements help protect the security of the rollover transaction and ensure the money is transferred correctly.”

SuperStream deadline set and reminders for missing bank accounts

With the government measure having been first announced back in 2019, Ms Black confirmed that the changes set to take place on 1 October 2021 have fixed deadline and that it was unlikely to see any further extensions.

“From 1 October, SMSF and APRA funds must initiate and process rollovers in the SuperStream framework from then,” Ms Black said.

“The law actually states trustees are to comply with the SuperStream data and payment standards for any rollovers from 31 March 2021. However, the commissioner extended it to all trustees until 1 October to onboard the SuperStream because of the number of changes and challenges everyone faced last year.

“Because this extension was already provided, we do not see any further extensions being made.

“So, we want to make sure everyone that needs to use SuperStream knows what’s required and is ready and able to do so come 1 October this year.”

With the ATO recently also issuing alerts on SMSFs missing a unique bank account, Ms Black suggested that funds affected by the changes should regularly ensure their records are up to date and correct with the ATO.

“The recent letter campaign was issued to about 3,300 SMSF trustees who on our records look like they don’t have a unique bank account for super purposes,” Ms Black noted.

“However, it could just have been an error in the information provided to us previously. For example, we’ve seen in the past some tax agents’ bank account details for tax purposes were stored against the SMSF’s account details for super purposes just by mistake.

“That’s why we’re asking those that we’ve identified just to review their records and update it now to avoid downstream delays which can be done very quickly and easily through their tax agent or they can contact us directly.”

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