Since 1 October 2021, new requirements are in place for self-managed superannuation funds (SMSFs) to use SuperStream Rollover v3 for any rollovers into and out of the fund. If an SMSF is not SuperStream ready, APRA-regulated super funds will be unable to process rollover requests and SMSF to SMSF rollovers will contravene the trustees’ regulatory obligations.
Whilst most SMSFs have been using SuperStream to receive superannuation guarantee contributions since 2014, they will now need to ensure that their Electronic Service Address (ESA) provider is also able to process rollovers. Payments and data are transferred electronically via SuperStream in a standard format, essentially meaning that it will no longer be acceptable for trustees to send and receive cheques and paper rollover benefit statements between funds.
It’s important to also note that SIS Regulation 6.34 prescribes that the trustee is required to rollover or transfer an amount no later than three business days after receiving the rollover or transfer request, or the date the trustee receives further required information not originally provided by the member. Non-compliance could trigger administration penalties for the SMSF at 20 penalty points, which is up to $4,400 per trustee.
There are some exemptions from the SuperStream requirements:
- In-specie transfers (also known as off-market transfers)
- Personal contributions made to an SMSF by its members
- Superannuation guarantee payments from a related-party employer (eg family business)
- SMSFs already exempt from using SuperStream to make contributions will also be exempt for rollovers
If you need help getting SuperStream ready or have any questions relating to the above, please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or email@example.com.