Starting 1 October 2021, the process of rolling over funds to or from your SMSF will require an active Electronic Service Address (“ESA”) that facilitates SuperStream services specifically for rollovers. This particular change emphasises the significance of involving SMSF accountants to navigate these requirements effectively. It’s important to note that while certain ESAs are currently active for contributions, they may not support rollovers. To adapt to this upcoming change, it is crucial to have an ESA in place, ensuring that your employer’s super contributions are promptly paid, and your super funds are smoothly rolled over.
What is SuperStream and an ESA?
SuperStream is an electronic data and payment system set up by the ATO to streamline superannuation payments between super funds, employers and the ATO. This will impact SMSFs when actioning:
- rollovers into your SMSF from another super fund; or
- rollovers out of your SMSF to another super fund, including wind-up your SMSF;
- ATO release authorities (e.g. concessional and non-concessional contribution caps, Division 293 tax payments, and First Home Super Saver Scheme).
The SMSF’s ESA is the electronic service address of the fund’s messaging provider or intermediary, such as the SMSF administrator or tax agent, which enables SuperStream data to be received. An email address is not an ESA.
What do I need to do now?
Ensure the following information is up to date with the ATO:
- Your SMSF details and personal details (i.e. full name, current address) are recorded;
- Your SMSF has an Australian Business Number (“ABN”) and a unique bank account for superannuation payments; and
- Your SMSF has or will have a valid ESA enabled from 1 October 2021.
Also, ensure that your employer has the following:
- Details of your SMSF to pay your employer contributions into – including the fund’s ABN, bank account details and your membership number; and
- The fund’s ESA supports rollover SuperStream services.
Note: Not all ESAs support SuperStream services, including Australia Post and Macquarie Bank – If uncertain, kindly reach out to your SMSF administrator or tax agent for clarification.
What happens if I don’t comply with these SuperStream requirements?
If you cannot comply with these changes after 1 October 2021, APRA-regulated super funds cannot process rollover requests. Rollovers between SMSFs will result in a breach of trustee regulatory duties and may result in an auditor contravention report being issued along with additional costs to rectify the breach.
What else should I be aware of?
For a rollover into an SMSF, the fund must be an ATO-regulated fund, and the fund status can be checked on the Super Fund Lookup website here.
If the fund status is either “regulation details removed” or “non-complying”, the fund cannot receive rollovers or accept employment or personal contributions.
The most common reason a fund’s regulation details are withheld is that the fund and/or trustees have not kept their tax lodgements current. Once the fund’s details are removed from Super Fund Lookup, the ATO will not reinstate the status until all lodgements are current.
If you have any queries, please don’t hesitate to contact us.
Kreston Stanley Williamson Team
*Correct as of 29 September 2021
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
