The ATO has outlined the most common errors occurring during superannuation transfers via its SuperStream system, which can result in the transaction not taking place.
In an update for practitioners on its website, the regulator stated there were three common reasons that lead to funds receiving a ‘not verified’ response when using the SMSF verification process (SVS), which is a mandatory electronic service that must be used to verify SMSF details prior to making a rollover to an SMSF.
According to the ATO, the errors were a mismatch between the SMSF or member information and data held by the regulator, a newly registered SMSF without bank account details, and no electronic service address (ESA) enabled for SuperStream rollovers.
“These issues are easily resolved by notifying us of changes to the SMSF,” it stated.
“To avoid delays with release authorities for SMSFs, ensure SuperStream rollover-enabled ESA is kept up to date as per requirements of the Australia Business Register law and payment is made to the current ATO SuperStream account using the payment reference number (PRN) that matches with the PRN on the release authority statement.”
Earlier this month, the ATO stated the SVS service was being delayed by a high level of manual verifications from Australian Prudential Regulation Authority-regulated funds planning rollovers into SMSFs, many which did not include ESA and bank account details.
Smarter SMSF chief executive Aaron Dunn said the introduction of SuperStream has created a greater role for service providers, but those not licensed to give advice should be careful as to what services they provide.
“With the key SMSF software providers now having updated their systems to utilise electronic messaging for rollover requests to and from an SMSF from 1 October 2021, there would appear to be a greater role of the accountant/administrator in activating and managing this rollover process via SuperStream. This will include using the messaging service to confirm receipt of the rollover funds into the SMSF bank account,” Dunn said in a recent blog post related to SuperStream.
“It is important to remember for those who are not appropriately licensed that any requests being undertaken do not overstep the mark of having provided financial product advice in respect to the activation of a rollover request. Ensuring unlicensed practitioners have appropriate instructions and/or other evidence to support the request will be vital.”
