In the realm of SMSFs, the ability to seamlessly process rollovers is paramount for trustees and members alike.

With SuperStream, a government initiative aimed at streamlining superannuation transactions, the process of rolling funds into and out of SMSFs has become more efficient and transparent.

Trustees of self-managed super funds (SMSFs) must comply with the SuperStream rules in Division 6.5 of the Superannuation Industry (Supervision) Regulations 1994 (SISR) for rollovers.

Transferring money between Superfunds without initiating the rollover via SuperStream first would result in failure to comply with Division 6.5 of the SIS Act.

Thus, leading to a breach of the payment standards outlined in SISR 6.17, which lead to auditor contravention report (ACR) and may result in significant penalty.

Additionally, it could also have adverse effect as the money transferred could be deemed as a lump sum withdrawal and/or a contribution.

The Superfund could be deemed to have illegally accessed the superannuation funds if it has not satisfied a condition of release for withdrawal.

Illegally accessing your super will cost you a lot more than the super you withdraw. You may face significant financial consequences and lose your retirement savings.

Any amount you illegally access will be included as income in your tax return, even if you return it to the fund. This means you may pay:

  • additional income tax
  • tax shortfall penalties
  • interest.

If you’ve illegally accessed your super you can’t return it back into your fund. Any attempt to do so will be considered a new contribution.

Below is the process on how to initiate Rollover from and into your SMSF:

Rollover from your SMSF into External/Industry Superfund

  1. Gather Rollover Information: Begin by gathering all necessary information related to the rollover, including details about the existing industry superannuation fund, member information, and the amount to be transferred.
  2. Contact your SMSF administrator: Contact your SMSF administrator to initiate the rollover via SuperStream.
  3. SuperStream Validation: SuperStream-enabled platforms typically include built-in validation checks to ensure the accuracy and completeness of the information entered. These checks help minimize errors and ensure compliance with regulatory requirements.
  4. Initiate Rollover Request: Once the rollover details have been entered and validated, initiate the rollover request through the SMSF administration platform. The platform will securely transmit the data to the existing superannuation fund via the SuperStream network.
  5. Process the rollover amount to be transferred: Your SMSF administrator will provide you with payment details, including bank account information and payment reference, for the corresponding industry superfund.
  6. Confirmation and Tracking: Upon receipt of the rollover payment, the industry superannuation fund will process the transaction and provide confirmation of the transfer via SuperStream.

Rollover into your SMSF from External/Industry Superfund

There are two ways you can rollover from External / Industry Superfund into your SMSF:

  1. Contact the industry superfund: Contact your industry superfund to initiate the rollover via SuperStream.
  2. Contact your SMSF administrator: Contact your SMSF administrator to initiate the rollover via SuperStream.

In conclusion, SuperStream offers a streamlined and efficient mechanism for processing rollovers into self-managed superannuation funds. By understanding the steps involved and leveraging the capabilities of SuperStream-compatible platforms, trustees and administrators can navigate the complexities of rollover transactions with confidence and ease, ultimately enhancing the efficiency and effectiveness of SMSF management practices.

Should you require assistance in the above matter, please do not hesitate to contact our team.

Written by Natalia Dilag CA

Disclaimer: The information provided herein is intended for general informational purposes only and does not constitute professional tax advice. Tax regulations are subject to frequent changes, and the applicability of tax strategies can vary based on individual circumstances. Any reliance on the information contained in this communication is at the user’s own risk. For personalised and up-to-date tax advice tailored to your specific situation, it is recommended to consult with a qualified tax professional. No client-professional relationship is established through the use of this information. The issuer disclaims any liability for actions taken based on the content provided without seeking appropriate professional advice