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New support will address issues facing many accountants around SuperStream rollovers.
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ATO releases temporary measure to fix SuperStream delays
16 March 2022
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10 minute read
The ATO said it understands that some SMSFs have had issues obtaining an ESA from an SMSF messaging provider to ensure a rollover occurs within the required time frame of three business days from receipt of all information required to process the request.
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It recognised that this had caused major headaches for accounting professionals, with funds dealing with failed transactions and money getting lost in the system.
The Tax Office said it would address this with a dedicated phone support service for funds across the rollover process.
“If you have attempted to obtain an ESA to make a rollover from your SMSF, or receive a rollover from another SMSF, but you had issues doing so, you can contact us on 13 10 20 and select fast key codes 4 then 1 to discuss your options,” the ATO said.
The ATO would then check if funds had an SMSF messaging provider with rollover services.
“If you do – we will ask you to contact the provider for further assistance,” the ATO said.
“If you don’t – you can request to undertake the rollover outside SuperStream. We will confirm over the phone that you can use the paper process used for rollovers prior to 1 October 2021 and make a record of the approval.”
The ATO said SMSFs should let their auditor know the fund had obtained the approval to make a rollover using the paper process and provide them with the reference number for the call.
“Your auditor will not be required to report a contravention to us where you have received our approval to make the rollover outside SuperStream. This is a temporary measure put in place to help facilitate SMSF rollovers,” the ATO said.
However, the ATO warned that using a paper form to conduct a rollover outside SuperStream on or after 1 October 2021 without first seeking approval is a reportable breach of the SuperStream rules.
“In lodging an Auditor/actuary contravention report, your auditor should tell us the reason(s) why the rollover was conducted outside SuperStream, so we can take this into account when risk assessing the fund and deciding whether to apply penalties,” the ATO said.
“Where we can see the SMSF trustee has had issues obtaining an ESA we are unlikely to impose penalties for non-compliance with the SuperStream rules.”
It said those with other issues regarding SuperStream compliance should use the same number and key codes to discuss the options.
The process is available only for rollovers from an SMSF and between SMSFs. If funds have issues obtaining an ESA to make a rollover from an APRA-regulated super fund to an SMSF, SMSFs will need to contact the APRA fund directly.
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