SuperStream deadline for SMSF employer contributions and rollovers
From 1 October 2021, SMSF trustees will be required to use SuperStream to receive employer contributions and roll over any super to or from their SMSF.
SuperStream is a data and payment standard used for digital transactions within the super industry.
Many SMSFs already use SuperStream for contributions, however from next month it will be compulsory for all SMSFs.
Among SuperStream’s benefits are:
- more timely and reliable flow of payments and information about contributions, rollovers, and certain release authorities (e.g. first home super saver scheme)
- an electronic record to support your accounting and tax obligations (including your SMSF annual return)
- fewer data and payment errors.
According to the Australian Taxation Office (ATO), which regulates SMSFs, to use SuperStream you’ll need:
- an electronic service address (ESA) — a special internet address that helps SuperStream transactions get to the right destination
- an Australian business number (ABN)
- to ensure your SMSF details are up to date, including your SMSF’s bank account.
The ATO says that, given the digital nature of these transactions, you may want to consider hiring a professional to help you.
If Modoras administers your SMSF, we can register it for SuperStream for free (if you register it through an SMSF messaging provider, they’ll likely charge you a subscription fee).
If you’re not SuperStream-ready
It’s important that you’re SuperStream-ready by 1 October 2021, otherwise:
- APRA-regulated super funds will be unable to process your rollover request
- an SMSF-to-SMSF rollover will contravene the trustees’ regulatory obligations.
If you already use SuperStream, the ATO advises you to check with your current ESA provider that it’s still active and, if it is, that your provider offers rollover SuperStream services.
Need help getting your SMSF SuperStream-ready before the 1 October 2021 deadline?
Our accountants can help you with the SuperStream registration process or can simply give advice.
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