Compliance, Superannuation

SMSF SuperStream draft laws get strong backing

The SMSF Association has welcomed the draft regulations that extend the use of SuperStream to rollovers to and from SMSFs.

Earlier this week, Treasury released its exposure draft to amend the Superannuation Industry (Supervision) Regulations 1994 (SISR) with the purpose of extending the operation of SuperStream to capture SMSFs.

“These draft regulations will make it easier for individuals who choose to manage their own super to roll over their existing super funds into an SMSF,” SMSF Association head of policy Jordan George said today.

“Electronic rollovers between Australian Prudential Regulation Authority-regulated funds and SMSFs is something the association has long called for, so it’s gratifying to see the government make this announcement.

“For SMSFs, it will reduce compliance costs by removing manual processes, improve establishment processes, decrease rollover transaction times and improve the integrity of the system.”

Jordan said currently SMSFs can experience lengthy delays in receiving rollovers from large super funds.

“So this change will ensure rollovers are made in a timely manner, enhancing choice and efficiency in the super system,” he noted.

The SMSF Association will further assess how the broader inclusion of SMSFs in SuperStream will affect the sector and SMSF trustees.

It will also consult on the draft regulations that will begin on or after 30 November 2019.

The exposure draft regulations also make some minor changes to simplify and update SISR.

The stakeholder consultation period is now open and submissions are due by 3 August.

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