The Federal Government’s decision to release draft regulations to extend SuperStream to self-managed superannuation fund (SMSF) rollovers has the strong backing of the SMSF Association.
The announcement, by the Minister for Revenue and Financial Services, Kelly O’Dwyer, will make it easier for SMSFs to roll superannuation monies into their individual funds. Previously, only rollovers between APRA funds could use SuperStream.
SMSF Association Head of Policy Jordan George says: “These draft regulations will make it easier for individuals who choose to manage their own superannuation to roll over their existing superannuation funds into an SMSF.
“Electronic rollovers between APRA-regulated funds and SMSFs is something the Association has long called for so it’s gratifying to see the Government make this announcement.
“For SMSFs, it will reduce compliance costs by removing manual processes, improve establishment processes, decrease rollover transaction times and improve the integrity of the system.
“Currently, SMSFs can experience lengthy delays in receiving rollovers from large superannuation funds, so this change will ensure rollovers are made in a timely manner, enhancing choice and efficiency in the superannuation system.”
The Association will be further assessing how the broader inclusion of SMSFs in SuperStream will affect the sector and SMSF trustees.
George adds the Association looks forward to consulting on the draft regulations that will begin on or after 30 November 2019.