SMSF practitioners will benefit from ensuring more of their clients are set up to use the SuperStream system in time for the introduction of mandatory requirements for all SMSF rollovers from 1 October, a technical expert has said.
Pointing to the extension of SuperStream to SMSF rollovers, Smarter SMSF chief executive Aaron Dunn noted obtaining an electronic service address (ESA) and registering with the system would soon become an essential requirement for SMSFs wanting to roll over money into or from a fund.
“From 1 October this year, SMSFs must be able to receive rollovers via the SuperStream service. Where the fund cannot interact via SuperStream, then there is going to be no way, shape or form that the fund will be able to receive rollover monies nor are we going to be able to roll any money out of the fund,” Dunn said during the opening session at the Smarter SMSF Virtual Day 2021 today.
“This is going to become really important with some of our older clients or clients that no longer want to actually have an SMSF.
“When we are looking to wind up funds and we’re going to be transferring money, we are also going to be needing to get that ESA to enact that rollover to go from the fund equally as much as it is coming into the fund.”
Given the increased reliance on the SuperStream system for SMSFs, he also noted practitioners would benefit from ensuring an ESA was obtained for every fund as part of the process of establishing SMSFs for clients.
“When you’re winding up funds, you’re going to need to make sure that you’ve got that in play and therefore it might just become a more natural part of the process with any funds that are being established,” he added.
“Even as you look to some of your other funds that you may have at the moment, it may be more prudent to simply look at getting an ESA for a lot more of your clients because of the fact that SuperStream is going to be far more interactive across a broader number of your SMSFs than is currently the case where they are only there to receive employer contributions.”