SuperStream proposals cause confusion for SMSFs

Confusion reigns among self-managed super fund (SMSF) trustees, members and administrators about the upcoming SuperStream changes at the end of November, 2019.

The amendments would require SMSFs to receive digital rollovers through the SuperStream system but the Federal Budget proposed to defer them until March, 2021.

The changes would make things easier for individuals who wish to manage their own superannuation by speeding up the rollover of benefits between Australian Prudential Regulation Authority (APRA)-regulated funds and SMSFs. It was also expected it would reduce compliance costs and cut down transaction times.

Despite the deferment, from 30 November, 2019, SMSFs would be required to obtain a digital address and provide it to the Australian Taxation Office prior to receiving a contribution or a rollover from another fund.

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Graeme Colley, executive manager of private wealth at SuperConcepts, 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.”