SuperStream rollovers have transformed how self-managed superannuation funds (SMSFs) transfer benefits to and from other super funds. While the system promises efficiency, the reality can involve significant complexities – especially when errors or delays arise.
As SMSF auditors, Audit your Superfund is committed to helping trustees and their accountants navigate these challenges confidently and compliantly.
Why are SuperStream rollovers so important?
Since October 2021, all SMSF rollovers – whether into or out of an SMSF – must be completed via the SuperStream data and payment standard. This applies to most cash rollovers between SMSFs and APRA-regulated super funds. The aim is to streamline the process, but strict compliance is required.
Steps trustees must follow
When processing a SuperStream rollover, trustees and their advisers must ensure:
- The SMSF’s electronic service address (ESA) supports rollovers under SuperStream.
- Member and fund details match exactly with those recorded by the ATO.
- The SMSF’s bank account details are verified with the ATO using the SuperStream Verification Service (SVS).
- Rollover transactions are processed within three business days of receiving the request.
Verifying rollover completion in an audit
A crucial part of the SMSF audit is verifying that rollover amounts actually reached the SMSF’s current bank account – or were correctly transferred out. Auditors look for:
- Bank statements showing receipt or transfer of funds.
- SuperStream data reports or external documentation matching the transaction.
- Evidence from industry funds or an ESA provider confirming successful completion of the rollover.
If an auditor cannot see independent evidence of these transactions, this is a compliance risk – potentially reportable to the ATO.
What can go wrong? Common SuperStream problems
Even with best intentions, SuperStream rollovers can go awry:
- Mismatched details between the SMSF and ATO records (e.g., name, bank account, ABN, or ESA) lead to failed verifications.
- Some APRA funds may introduce extra ID checks, causing avoidable delays.
- System errors at ESA providers or outdated administration software can interrupt data transmission.
- Delays arise when funds send multiple or manual SVS verification requests, as the ATO must process each individually.
- Incorrectly processed or incomplete data can cause a “not verified” SuperStream response, stalling the entire transaction.
Consequences of a failed rollover
When SuperStream compliance fails – such as not using a SuperStream-enabled ESA, not processing the rollover promptly, or incomplete data – trustees risk a contravention:
- The failure may be reportable by the auditor via an Audit Contravention Report (ACR) to the ATO.
- Trustees must be notified in writing, and the auditor may need to qualify their opinion in the SMSF audit report if the breach is significant.
Best practices to prevent issues
- Double-check SMSF and member details with the ATO before attempting any rollover.
- Use up-to-date administration platforms and ensure your ESA supports SuperStream rollovers.
- Prepare all required documentation and provide it promptly to your adviser and auditor.
- Monitor the SMSF’s bank account and retain all supporting SuperStream data for verification.
Key takeaways
SuperStream rollovers offer real advantages but introduce new compliance risks and potential delays. Trustees should work closely with their accountants and advisers, not only to process rollovers smoothly, but also to ensure that comprehensive evidence is available for audit.
Meticulous record-keeping, prompt communication, and proactive compliance checks are key to avoiding costly mistakes or delays.
Audit your Superfund is here to help. If considering a rollover or encountering delays, contact us for specialist guidance to ensure every step is handled with clarity and confidence.