SuperStream reporting standard extended to SMSF rollovers from 1 October 2021

Under the SuperStream standards, APRA funds and SMSFs are required to process the rollover within three business days of receiving all the required information.

Note: as in-specie rollovers are exempt from SuperStream, they can be actioned using your existing processes.

What you need

To use SuperStream, your SMSF will need to:

• engage an SMSF messaging provider offering SuperStream rollover services and obtain their electronic service address (ESA)
• obtain an Australian business number (ABN)
• ensure up-to-date details are recorded with us, including the SMSF's unique bank account for superannuation payments and ESA.
• ensure they have a 'Complying' or 'Registered' status on Super Fund Lookup.

Verification prior to rollovers

Prior to rolling super into your SMSF, the transferring fund (APRA or SMSF) will use the SMSF verification service (SVS) to verify certain details about you and your SMSF.

The SVS will send a non verified response if the:

• ATO or the transferring fund does not hold the required and/or correct SMSF details, including bank account and ESA
• SMSF is not 'Complying' or 'Registered' on Super Fund Lookup
• provided ABN is not registered as an SMSF
• In these instances, (an authorised contact of) your SMSF will need to contact the ATO
• When the transferring fund uses the SVS you will receive an SMS alert.

Prior to rolling super out of your SMSF you must use the SMSFmemberTICK service to validate the tax file number (TFN) of the SMSF member.

The SMSFmemberTICK service will send an invalid response if:

• the ATO or transferring fund holds the incorrect name or date of birth for the member
• the TFN has a compromised or duplicate status on our systems
• our data matching system cannot establish a single match
• In these instances, the impacted member must contact the ATO

Partial rollovers

• For requests to rollover a partial amount of super benefits, you must make the request directly to either the transferring or receiving fund.
• Partial rollovers cannot be requested via ATO Online.
• Partial rollovers must be completed using SuperStream.

Tips to minimise delays when rolling super to or from an SMSF

1. Ensure the SMSF details provided to the transferring fund match the details we hold.
2. Ensure the member details, such as a surname, held by the transferring fund match those of the receiving fund. Sometimes these need to be updated with the transferring fund prior to requesting a rollover.
3. When rolling super out of the SMSF, be aware your financial institution may have a daily limit on the amount that can be transferred which may impact the amount being rolled out. You will need to confirm this with your financial institution before initiating the rollover and then determine if you need to

• increase the transfer limit with them
• change the rollover amount to an amount below your limit and repeat as required
• change to a different financial institution.

4. The transferring fund may request further information such as proof of identity (POI) documents and bank account details for fraud prevention reasons.
5. If they do, they must request this information within five business days of receiving your request, and then complete that rollover within three business days of receiving the information.
6. When transferring super from an APRA fund to an SMSF, contact your APRA fund to discuss your specific POI requirements and submit the documents in a timely manner.
7. Use the Fund Validation Service to obtain the APRA fund’s current banking details.
8. Do not submit multiple rollover requests when there is a delay.
9. Ensure your SMSF is ready to rollover the amounts before submitting your request, such as confirming your SMSF has sufficient liquid assets.
10. Ensure the ESA of your SMSF provides rollover services, as not all ESAs can be used to process a rollover.
11. When rolling out of your SMSF ensure the payment reference number (PRN) on the message and payment match and send the message and payment to the receiving fund at the same time where possible.

Release authorities using SuperStream Rollovers v3

A release authority (RA) is a document the ATO gives to a fund to authorise release of their member's super.

SMSFs who have an SMSF messaging provider who offers SuperStream rollover services will receive the following release authorities electronically:

• Excess Concessional Contributions
• Excess Non-Concessional Contributions
• Excess Non-Concessional Contributions Tax
• Division 293 due and payable
• Division 293 deferred debt
• First home super saver scheme

Upon receipt of an electronic RA, your SMSF must, within 10 business days from the date of release authority:

1. Electronically pay us the lesser of

• the amount stated in the release authority, or
• the total amount of the super interest that could be paid at that time

2. Send us a release authority statement (RAS) message via SuperStream advising

• the amount that was released to us
• for partial releases, whether any super benefits remain in the account.

3. Send us a release authority error message (RAER) via SuperStream if your SMSF is unable to action the release authority.

Tips for responding to a RA via SuperStream

• The RAS must be returned via the same channel the RA was received.
• Send one response for each RA (either RAS or RAER).
• Each RAS message must be accompanied by one payment – do not send a bulk payment for multiple RAS messages.
• Make the payment to the SuperStream bank account.
• Ensure the PRN of the payment matches the PRN advised within the RAS message.

ABOUT PBIS:

Pacific Business Integrated Solutions (PBIS), located in Hochiminh City, VietNam, is the most efficient and high quality SMSF, Accounting, Book-keeping & Financial Outsourcing operator serving the Australia market. Led by a professional management team experienced in Australia and the Asia-Pacific region, PBIS vision is aiming to provide the best value-for-money service in SMSFs, Taxation, Financial Planning to Accountants, Auditor, Financial Advisors, Accounting Advisory Firms in Australia. 

PBIS has been among top Outsourcing providers of choice in terms of best quality services with fast turn-around time. Our Australian clients have been able to achieve significant up to 70% of HR/Admin cost and impressive growths through focusing on acquiring and taking care of customers. 

Contact PBIS today to experience best practices in administration, privacy, compliance, real-time status tracking, and intelligent on-demand reports of business performance to scale up your business confidently.

Follow us on Social media for latest news and best service deals:

LinkedIn: https://www.linkedin.com/company/pbisoutsourcing/

Twitter: https://twitter.com/pbisoutsourcing 

Facebook: https://www.facebook.com/pbisoutsourcing