Explore Superstream in SMSF

Superannuation Industry (Supervision) Regulations 1994 (SISR) was amended to extend the operation of SuperStream to cover SMSFs. From 1 October 2021, SMSF trustees are required to comply with the following rules in Division 6.5 of Part 6 of the SISR for any rollovers into or out of the SMSF:

• receive rollover requests electronically
• validate member details
• use the ATO’s electronic services to verify fund and member information, and
• complete rollovers within 3 business days.

The SuperStream rules in Division 6.5 of the SISR will not apply to:

• In specie rollovers
• Non-complying SMSFs when completing a rollover to another super fund
• Transfer to/from overseas superannuation funds
• Family law superannuation split that is subject to a prescribed splitting order

When an SMSF is undertaking a death benefit rollover for a dependent child beneficiary, a Death benefit rollover statement form outside SuperStream will also be required to be sent to the receiving fund.

SMSFs need to be able to receive employer contributions and the associated data electronically using the SuperStream standard. Exemption will be applied to super guarantee contributions made by a related-party employer and personal contributions made to SMSF by its members.

SuperStream has also been extended to allow the release authorities for excess contributions, division 293 payment and first home super saver to be sent to super funds electronically via the SuperStream. Once the fund receives a release authority message in SuperStream, trustee needs to take action to process that release authority within 10 business days from the date of the release authority.

SMSF needed to be SuperStream ready if the member wanted to rollover cash benefit to or from the fund from 1 October 2021. Trustees are recommended to:

• Check if the SMSF had an active electronic service address (ESA):

o if SuperStream has been used to receive contributions, or the fund have had an ESA in the past, check with the ESA provider that it is still active.

o if the fund has an active ESA, confirm with current ESA provider that it is providing rollover SuperStream services. 

o if an SMSF administrator or SMSF software from a provider is used, they may have provided an ESA as part of their service. If unsure, please check with them about this and their plans regarding SuperStream rollovers.

o if none of the above applies, an electronic service address can be obtained from an SMSF messaging provider.

o alternatively, consider appointing professionals to help managing SuperStream rollovers and release authorities.

• For newly established SMSFs, confirm the SMSF has an ABN:

o if not, it can be applied via the Australian Business Register (ABR).

• Update SMSF details:

o make sure the information (including ESA, financial institution account and members and trustee details) held by ATO and ABR for the SMSF are accurate and up to date. 

o the information can be checked via ATO online services or the ABR via log in to myGov account, or talk to the registered tax agent or contact ATO

• Check the fund’s complying status:

o Make sure the SMSF status is shown as Complying before attempting to rollover via Superstream.

o Rollovers and contributions will not be processed via SuperStream if the SMSF’s regulation details have been removed due to overdue SMSF Annual Returns.

o SMSF’s complying status can be checked at Superfundlookup.gov.au

• Before initiating a rollover or payment via SuperStream:

o  Trustee is recommended to confirm the SuperStream readiness with their ESA provider 

o  Administrator needs to have up to date information to process the transactions through SuperStream

• For payments such as release authorities, trustee needs to ensure that there are adequate benefits in the member account
• If the information in the administration software is not up to date, then SuperStream processes can be delayed.
• Not all ESA providers are capable to receive rollover SuperStream services. 
• In March 2022, ATO announced a temporary measure to allow SMSFs having issues to process rollovers via SuperStream to seek approval from ATO to undertake the rollover using paper form outside SuperStream (ATO QC68158).

For SMSFs using SuperStream to action rollovers or release authorities, the following records produced by the SMSF messaging provider or administration software should be kept for preparation of the fund’s financial statements and annual tax return and ready to be provided to SMSF auditors upon request for 2022 financial year onwards:

• Rollover request.
• Rollover transaction information, including tax and preservation components of the rollover benefits.
• Rollover confirmation from receiving fund.
• Release authority statement.
• Release authority statement outcome response.
• If approval has been obtained from ATO to allow the fund to process a rollover using the paper form outside SuperStream, the record of the call and reference number.