The SMSF Association has welcomed a move by Parliament to allow self-managed superannuation funds (SMSFs) to receive digital rollovers through the SuperStream system, saying that it will also clarify when SMSFs were required to enter the system.
SMSFs would now only be required to obtain a digital address and provide it to the Australian Taxation Office (ATO) if it receives a contribution (other than form a member or related party employer), rollover or transfer of a member’s withdrawal benefit.
“This is a positive development for the SMSF sector and one the Association has long advocated. It will make it easier for individuals choosing to manage their own superannuation to rollover existing superannuation funds into an SMSF, or, conversely out of an SMSF and into an APRA [Australian Prudential Regulation Authority]-regulated fund,” SMSF Association acting chief executive, Jordan George, said.
“As a consequence, SMSFs no longer receiving rollovers or employer contributions will not have to enter the SuperStream system just because they receive a once-off, non-concessional or member-related contribution.
“If non-concessional contributions did fall into the remit of the SuperStream regulations, it had the potential to create a compliance burden for SMSF trustees, especially for older and established SMSFs that don’t receive employer contributions and have no real need for SuperStream.”
George said that SMSFs typically only receive contributions directly from the member, meaning the proposed legislative carve-outs would remove the compliance burden for many trustees.