The SMSF Association has welcomed the ATO’s decision to extend the agent-to-client linking service timeframe to accommodate smoother rollovers of refunds through SuperStream during the winding up of a fund.
The client-to-agent service was upgraded last month to include additional security measures to reduce the risk of taxpayers being exposed to fraudulent activity. However, the SMSF Association entered into discussions with the regulator after its membership expressed concerns over the impacts of the protocol.
Association head of technical Mary Simmons said the most pressing issue raised by its members was the challenge in executing SuperStream rollovers of refunds received before an SMSF was wound up.
“Traditionally, authorised agents were delinked from an SMSF once the final annual return was processed, post-wind-up. Previously, to facilitate the rollover of any resulting refund using the SuperStream standards, agents would simply re-establish their link to the wound-up SMSF,” Simmons noted.
“However, with the new protocol in effect since November, relinking requires explicit permission from the SMSF’s trustee, adding a layer of compliance.”
After consultation with the industry body, the ATO revised the delinking process to allow an extended window for SMSF trustees and practitioners to facilitate a more efficient rollover of funds from an SMSF.
“Now, the client-to-agent link will only be terminated 28 days after the SMSF’s wind-up has been processed, aligning with the period during which the SMSF’s ABN (Australian business number) remains active. This alignment facilitates the completion of necessary rollovers before an authorised agent is delinked and the SMSF is deregistered from Super Fund Lookup,” Simmons stated.
She added any SMSFs wound up since the implementation of the security protocol in November would also receive retrospective relief after the ATO decision.
“For those impacted, the ATO has also reactivated client-to-agent links for SMSFs that were wound up since the initiation of the new protocols, ensuring these funds can complete rollovers within this 28-day window,” she said.
“We applaud the regulator for their swift and practical response to this issue. This change significantly eases the compliance burden for both trustees and agents, ensuring smoother rollover processes.”
The association encouraged its members to contact the industry body with any concerns or queries they may have about the new delinking process.