The ATO has updated the supporting information it provides with regard to SuperStream Rollover v3 and how its use applies to certain circumstances pertaining to an SMSF.
The guidance stipulates the types of transactions for which SuperStream Rollover v3 must be used and those that may require supplemental action to ensure the process is completed properly.
One area the regulator highlighted is whether an SMSF needs to use the SuperStream system to facilitate contributions splitting when the transaction results in the transfer of retirement savings benefits to their spouse who is a member of another super fund.
To this end, the ATO stated the transaction does not have to be executed via SuperStream, but SMSFs can choose to use the automated system should the trustees have the relevant information to do so.
The reason for this is that the use of SuperStream is only applicable in situations where a member makes a written request to roll over all or part of their benefit within the super system.
The ATO has also specified SuperStream does not need to be used for a split of superannuation benefits resulting from a family law decision.
“[Family law super splitting] rollovers are made under Part 7A of the SISR (Superannuation Industry (Supervision) Regulations) [and not Division 6.5 of the SISR], which deals with payments as a result of an arrangement whereby the member’s super interest is subject to a payment split under the Family Law Act 1975,” the regulator noted.
A further area of focus was death benefit pensions. Here the ATO pointed out the use of the SuperStream system is required, but in some circumstances a paper form might also have to be used.
“Death benefit rollovers paid to a child [should be] made via SuperStream, however, an additional paper form, Death Benefit Rollover Statement (NAT74924), should also be sent to the receiving fund. [Death benefit rollovers paid to] an adult recipient can be completed via SuperStream [and] no paper form is needed,” it said.
Further, the regulator acknowledged the transferring fund did not have to validate the death benefit recipient’s tax file number before a rollover is made, but that SMSFs may choose to do so via the SMSFmemberTICK service should the individual receiving the rollover be an SMSF member.