SuperStream rollover events clarified

The ATO has released examples of rollover events to support SMSF trustees in adhering to the SuperStream rules set to take effect from 1 October.

In a website update, the regulator outlined the circumstances where a trustee or authorised agent will be required to process fund rollovers using the new service.

Family businesses within a fund will be among those not required to send contributions via SuperStream due to the link of ownership between the appropriate business and membership, which meets the related-party exemption.

However, funds that involve a self-employed member in a fund that also includes family members working for non-related employers will need to use SuperStream to gain access to employer contributions.

SMSF members initiating a rollover request from an Australian Prudential Regulation Authority fund will need to request the transfer using the service from 1 October, as will trustees rolling out any member funds or winding up an SMSF after that date.

“From 1 October 2021, where your SMSF cannot interact via SuperStream, you cannot roll money out of your SMSF, including at wind up,” the ATO said.

It noted SuperStream will be a faster service for funds seeking to release excess contributions, but use of the service is not mandatory in this circumstance.

In addition, it warned funds to ensure their SMSF messaging provider allows SuperStream rollovers and to inform the ATO if they change providers.

In a separate update, the ATO stated all contributions made by a SuperStream rollover had to be reported during the financial year via the SMSF annual return and funds were also required to complete a transfer balance account report to report the debit that arises in the member’s transfer balance account if they commute a retirement-phase income stream before rolling over the assets.

Source: smsmagazine.com.au