Rollovers SuperStream – Are You Ready For The Amemdments?

Amendments have been made to the Superannuation Industry (Supervision) Regulations 1994 (SISR) to extend the operation of SuperStream to cover self-managed super funds (SMSFs).  So what does this mean for SMSF trustees?

SMSF trustees are required to comply with the rules in Division 6.5 of Part 6 of the SISR for any rollovers, including partial rollovers, to and from a SMSF requested from 31 March 2021.  You may ask what is so special about 1 October 2021 if this has been required since 31 March 2021.  As is normal with a change of this kind, the ATO has given SMSF trustees a transition period and expects full compliance from 1 October 2021.

You may be aware, SIS Regulation 6.17 is a reportable contravention and also requires rollovers to be in accordance with Division 6.5.  Therefore auditors will look to obtain sufficient appropriate audit evidence to form an opinion on whether the fund has complied with the rules in Division 6.5.

Trustees and fund administrators should ensure that the following are included in the funds workpapers when sending to audit to avoid any delays:

Where the SMSF is the transferring fund of a rollover, auditors will request evidence confirming:

• the SMSF received the rollover request (which would have come from either the member, the receiving fund or the ATO)
• the rollover was made via SuperStream (for example, a printout from the trustee’s software provider), and
• the rollover occurred no later than 3 business days after receiving all the information required to process the request.

Where the SMSF is the receiving fund of a rollover, auditors will request evidence confirming:

• where the rollover request was received by the SMSF directly from the member, the SMSF trustee has used SuperStream to request the rollover from the transferring fund (for example, a printout from the trustee’s software provider); and
• the rollover was allocated to the member within 3 business days after it was received, and all information was received to enable it to occur.

Where a member requests a rollover to or from an SMSF on or after 1 October 2021, and an approved SMSF auditor identifies non-compliance with the rules in Division 6.5 and therefore a contravention of regulation 6.17 when conducting the annual compliance audit, they will be required to:

• notify the fund trustee(s) in writing
• providing the reporting criteria is met, report the contravention to the ATO via an Auditor Contravention Report (ACR; and
• modify Part B of the SMSF Independent Auditor’s Report if the contravention is material.

If you have any questions on concerns about meeting the payment standards when performing a rollover, please contact us.