The Government has confirmed that extending SuperStream to SMSFs will be delayed to March 2021, with the regulations in the works.
Included in the 2019 Federal Budget was a change to SuperStream, along with a delayed start of SuperStream for SMSFs – from 30 November 2019 to 31 March 2021.
Recently industry members have said there is confusion over when the changes would occur – as systems would need to be updated in the next couple of months under the original date.
The Government has yet to put in place the regulations for the proposed new start date. The regulations for a 30 November 2019 start date were only made in October last year.
Jane Hume, Assistant Minister for Superannuation, has confirmed the Government is sticking with the new 31 March 2021 date and that the regulations to give effect to this “will be made as soon as practicable”.
Prior to the announcement by Hume, Graeme Colley, SuperConcepts Executive Manager of Private Wealth, said: “With the law being in place but the 2019 Budget announcement deferring the commencement of the changes, administrators and other superannuation professionals are confused about what needs to be done. “
“They are trying to work out whether the changes to their systems are necessary this year or to do nothing and wait until the regulators or government clear up the confusion.”
“There is a real need for an official announcement to save the SMSF sector from unnecessarily allocating valuable staff resources and incurring costs now rather than later to implement the required system changes.”
When confirming the new date, Hume noted that currently only rollovers between large APRA-regulated super funds can be transferred electronically using SuperStream. From March 2021 SMSFs and APRA funds will be able to initiate and receive rollovers using the SuperStream system.
The start date for SMSFs to use SuperStream was pushed back because of the decision to include release authorities in SuperStream.
“This deferral means that system changes to update SuperStream will only need to be undertaken once, for both sets of changes,” Hume said.
“The deferral reduces administrative costs for funds and allows for a more integrated design of SuperStream.”
“These changes will streamline the way that users interact with the superannuation system, reduce costs and improve the efficiency of the system, which will ultimately benefit members.”