From 1 October 2021, Self-Managed Superannuation Funds (SMSF) will be required to utilise an Australian Taxation Office (ATO) electronic service (SMSF verification service) in order to complete a rollover of superannuation monies between a retail or industry superannuation fund (an APRA Fund) and an SMSF.
In addition to streamlining the process of moving superannuation monies between superannuation funds, the new changes will also allow SMSF trustees to receive electronic data for release authorities, such as:
- First Homeowner Super Saver Scheme
- Excess concessional and non-concessional contributions
- Excess non-concessional contribution tax
- Division 293.
Whilst most of the heavy lifting in relation to these changes has been done by SMSF software providers, there are some minor checks SMSF trustees will need to complete before 1 October 2021. These include checking the SMSF banking details on file with the ATO are current, ensuring the SMSF has an Electronic Service Address (ESA) and being aware of the SMSF Unique Superannuation Identifier (USI), which is the SMSF ABN.
We have reviewed our SMSF clients’ data to ensure we will be able to report via SuperStream from 1 October.
How it works
For whole member balance rollovers (i.e. not partial rollovers), members will be able to request a rollover either via transferring fund or the receiving fund. Members can also initiate the transfer by logging into their MyGov account. The request is made to the ATO using an Electronic Portability Form (EPF), which the ATO verifies and passes to the transferring Fund. Alternatively, members are still able to initiate the rollover request using the existing ATO approved form (NAT 75359).
For partial rollovers and in-specie rollovers, we will assist members in contacting their APRA fund and will adopt their standard process, as these types of rollovers are not yet subject to the SuperStream requirements.
Whilst the implementation of these new SuperStream requirements will provide more availability of information and efficiencies for transfers, it is important for trustees to speak to their advisers frequently in order to ensure the correct process occurs. Additionally, providing information to your adviser on a timely basis will allow reconciliations to be finalised quickly, and within the timeframes provided by the ATO.
If you are looking to make a rollover into your SMSF or have any questions, we encourage you to contact your BDO adviser as soon as possible.
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