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Changes to SuperStream on 1 October

August 2, 2021

On 1 October, the ATO will implement changes to SuperStream obligations. In this post, we outline what SuperStream is, how the ATO standards for implementation could affect you and how you can make sure you’re SuperStream compliant.

What is SuperStream?

SuperStream is an electronic system set up by the ATO to facilitate ingoing and outgoing super transactions between SMSFs and employers, other large funds or the ATO. The system is intended to simplify super rollovers by cutting down processing time and errors and linking data to payments using unique payment reference numbers.

In order to use SuperStream, you must have:

  • An ESA (electronic service address) that provides SuperStream rollover services;
  • An ABN; and
  • Current details recorded with the ATO, including your SMSF’s unique bank account for superannuation payments.

SuperStream has been available for use with rollovers since 31 March 2021 (depending on when your ESA provider started transitioning), however from 1 October 2021, SMSFs will be required to use SuperStream to roll over super including in the following circumstances:

  • When a member wishes to rollover funds from another super fund to your SMSF; or
  • When rolling over funds to wind up your SMSF.

As a member, you are also required to use SuperStream to receive and action certain release authorities such as the first home super saver (FHSS) scheme, amounts exceeding concessional and non-concessional contribution caps, and deferred and non-deferred Division 293 payments.

The risks of non-compliance

If you are unable to comply with SuperStream requirements after 1 October 2021, APRA-regulated super funds will be unable to process your rollover requests, and SMSF to SMSF rollovers will result in a breach of the trustees’ regulatory obligations. This will likely result in the issue of an auditor contravention report, and the associated costs to rectify the breach, and respond to any ATO queries that may arise.

Enforcement

The ATO has indicated that they will not take a hard-line enforcement approach while they support the industry during the transition. However, if your entity is not making satisfactory progress towards meeting obligations, the ATO may scale up compliance activity.

Penalties for non-compliance with SuperStream requirements range from issue of a direction notice to administrative penalties of up to $1,800 and prosecution of entities that are persistently non-compliant.

How we can help

If you would like to discuss SuperStream and your obligations further, or need assistance with obtaining an ESA, please contact our team on (07) 3217 2477.