From 1 October 2021, you won’t be able to rollover funds to or from your SMSF unless you have an active Electronic Service Address (“ESA”) which provides rollover SuperStream services, as some ESAs are active for contributions but not rollovers. By being prepared for this change, this will ensure your employer super contributions are paid and super monies are rolled over in a timely manner.
What is SuperStream and an ESA?
SuperStream is an electronic data and payment system setup 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 to 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 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:
- 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 which supports rollover SuperStream services.
Note: not all ESA’s support SuperStream services including Australia Post and Macquarie Bank – please contact your SMSF administrator or tax agent if unsure.
What happens if I don’t comply with these SuperStream requirements?
If you are unable to comply with these changes after 1 October 2021, APRA regulated super funds will be unable to process any 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 a SMSF the fund must be an ATO regulated fund and the status of the fund can be checked on the Super Fund Lookup website here.
If the status of the fund is either “regulation details removed” or “non-complying” the fund cannot receive rollovers nor can it accept employer or personal contributions.
The most common reason why a fund’s regulation details are withheld is because the fund and/or trustees of the fund have not kept their tax lodgements up to date. Once the fund’s details are removed from Super Fund Lookup, the ATO will not reinstate the status until all lodgements are up to date.
If you have any queries in this regard, don’t hesitate to contact your client manager.
Kreston Stanley Williamson Team
*Correct as of 29 September 2021
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to 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 contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.