The Government has released draft regulations to extend SuperStream for rollovers to SMSFs.
Currently only rollovers between APRA funds can be transferred using the electronic SuperStream system.
Under the draft regulations SuperStream for rollovers would be extended to SMSFs receiving or making rollovers on or after 30 November 2019.
“The Turnbull Government is supporting Australians who choose to manage their own superannuation through an SMSF by making it easier for them to roll their existing superannuation funds into an SMSF,” said Minister for Revenue and Financial Services Kelly O’Dwyer.
Minister O’Dwyer said this change would speed up rollovers between APRA-regulated funds and SMSFs, “which can currently take months to action”, lower compliance costs for both types of funds through reduced manual processing and improve the integrity of the super system.
The change was announced by Minister O’Dwyer in April 2018, in the same speech where it was announced the Government intended to increase the maximum number of SMSF members from four to six.
SuperStream rollovers for SMSFs has “strong backing” of SMSF Association
The extension of SuperStream to rollovers involving SMSFs has the “strong backing” of the SMSF Association.
“These draft regulations will make it easier for individuals who choose to manage their own superannuation to roll over their existing superannuation funds into an SMSF,” said SMSF Association Head of Policy Jordan George.
“Electronic rollovers between APRA-regulated funds and SMSFs is something the Association has long called for so it’s gratifying to see the Government make this announcement.”
“For SMSFs, it will reduce compliance costs by removing manual processes, improve establishment processes, decrease rollover transaction times and improve the integrity of the system.”
George said that SMSFs can experience “lengthy delays” in receiving rollovers from APRA funds, with the extension of SuperStream expected to mean rollovers are made in a timely manner.
The SMSF Association will be “further assessing” how the SMSF sector and trustees are impacted by the further inclusion of SMSFs in the SuperStream system.