Superannuation, Technology

SMSFs may not need ESA action

SMSFs ESA superstream

SMSFs using a digital service provider may already be compliant with the new SuperStream and electronic service requirements that will come into effect in October.

SMSFs using a digital service provider may not need to take any further action to ensure compliance with the SuperStream rollover requirements and the associated need to have an electronic service address (ESA) set to take effect from 1 October.

“If the current digital service provider and associated electronic service address are offering rollover services, then the SMSF has completed this step [of securing an electronic service address] in the process already,” ATO superannuation and employer obligations director and rollover project manager Belinda Black said during a video discussion with SMSF Association technical manager Mary Simmons.

However, Black did warn trustees could not take this situation for granted.

“SMSFs do need to make contact with their current digital service provider to determine if they will be offering the rollover and release authority services or not,” she advised.

“If they aren’t, then SMSFs will need to seek out one that does when, only when, they want to or need to action a rollover after 1 October.”

She confirmed an ESA can be obtained from an SMSF messaging provider, an administrator, tax agent, accountant or bank if needed.

Further, she noted the system will not allow an SMSF to have more than one ESA.

“SMSFs can only have one ESA at any point in time. So if an SMSF needs to engage a new service provider to allow for a rollover for SuperStream [purposes], it will replace their existing ESA,” she said.

To this end, she revealed the regulator will be developing new web content to let SMSFs know what is required if the trustees of the fund want to, or need to, maintain their ESA for contributions.

She also took the opportunity to clarify situations where the new SuperStream standard will have no effect.

“SMSF rollover legislation changes have no impact on the existing employer contributions reporting and the associated ESA structure. If the SMSF does not need to do a rollover, then they don’t need to do anything with their existing ESA and contributions reporting structure,” she said.

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