This article contains information on SMSF SuperStream for Rollovers and Release Authorities.
What is SuperStream?
The SuperStream data and payment standard is part of the Government’s Stronger Super initiative and introduces a streamlined method of sending superannuation payments and associated information electronically.
You must use the SuperStream Data and Payment Standards (SuperStream standard) when a member requests a Rollover of their member benefits to another super fund. This includes when a member requires to Rollover benefits between APRA-regulated super funds, retirement savings accounts or self-managed super funds.
Does Class provide an Electronic Service Address (ESA) for the SuperStream Rollover service?
Yes, all SMSFs loaded on Class are automatically registered for smsfdataflow which can be used for no additional cost. You can find more details about the Class ESA here.
Can I send Rollover details via SuperStream from Class?
Yes, provided the fund is managed on Class and smsfdataflow is the ESA being used by the fund.
What are the transactions supported via SuperStream?
- Rollovers – Transactions between an SMSF and either an APRA fund or SMSF
- Release authorities – Both APRA fund and SMSF
- Contributions (APRA fund and SMSF)
- Rollovers between APRA funds
- Other APRA fund specific transactions
The SuperStream standard does not apply under the following circumstances:
- When rolling to or from a non-complying fund
- Closed products – a product that does not receive any contributions or rollovers, but for which a member’s withdrawal benefit may be rolled over to another super fund
- Preservation components or asset drawdown for partial rollovers – these are dealt with under the default rules of the fund or instructions from the member
- Rollover amendments and cancellation – these are managed through other processes between the relevant parties
- In-specie rollovers – these can be managed through a process agreed between the relevant parties
- Internal fund rollovers – these can be handled by appropriate accounting and registry entries
What are the benefits of using SuperStream to handle Rollovers?
SuperStream improves the client experience by reducing cost and time between when a Rollover is requested and when it it completed. The Standard provides a consistent, reliable electronic method of transacting linked superannuation data and payments. With SuperStream, money and data are sent electronically in a standard format.
What if the SMSF doesn't have an ABN?
If the fund does not have an Australian Business Number (ABN), you can register at www.abr.gov.au.
All SMSFs require an ABN to receive contributions employers send using SuperStream. The ABN is used as the super fund identifier to ensure data messages reach the correct fund.
From 1 October 2021, all funds require an ABN to Rollover any super money to or from an SMSF.
What if an active fund in Class uses another ESA (e.g. Australia Post) and not Class's default ESA.
If the fund is not using Class's default ESA, you will not be able to use the functionality in Class for Rollovers. You will need to rely on functionality made available by the other ESA provider that is being used by that fund to initiate and process the Rollovers or Release Authorities. Note. the manual method of processing a Rollover business events is still available to use in Class, where the Rollover has been initiated and processed elsewhere.
What if my ESA does not provide rollover SuperStream services?
From 1 October 2021, you are unable to rollover funds to or from an SMSF if:
- the fund does not have an active ESA, or
- the ESA does not support Rollover or Release Authorities via SuperStream services
The fund needs to pick an ESA provider that supports Rollover and Release Authorities via SuperStream.
Does Class support all release authorities?
Only certain release authorities are supported by Class via SuperStream:
- First home super saver scheme
- Excess concessional contributions
- Excess non-concessional contributions
- Excess non-concessional contributions tax
- Div 293 tax
- Div 293 tax deferred debt
Does Class initiate a physical transfer of money for a Rollover or Release Authority?
No, the Trustees are required to make the EFT payment using the Payment Reference Number in the description once it has been provided to them.
Do I have to lodge annual tax returns through Class to be able to utilise the SuperStream functionality?
No, however, you need to set up the Tax Agent, configure the SBR details and ensure the SMSF in Class uses smsfdataflow as its default ESA so that Class can validate that the fund is linked to the respective Tax Agent.
Do Rollover Benefit Statements need to be signed when using SuperStream for Rollovers?
No, however, you are still able to generate a Rollover Benefit Statement from the respective Rollover Out business event for audit and records purposes.
What should the Trustees do if the amount to transfer for Rollover or Release Authority exceeds their internet banking limit?
The ATO has advised that Trustees should speak to their bank about temporarily increasing their internet banking transfer limit to be able to make the transfer electronically in one payment. If it is still not possible to increase the amount they should ask the bank about alternative options to send the money electronically. It is possible to make multiple payments using the same payment reference number.
What should I do if I encounter an error when processing a Rollover or Release Authority via SuperStream on Class?
Please refer to the help article SMSF SuperStream Readiness Checklist. You should ensure the Tax Agent of the fund is correctly set up and that certain key details that the ATO holds about the Fund or members of the Fund match in Class as well as the other Fund (for Rollovers).