SuperStream is a standard for processing superannuation data and payments electronically. It must be used by employers, self-managed super funds and APRA-regulated funds for the confirmation of contributions and cash rollovers.
The next iteration of SuperStream (“Rv3”) has been extended to now include:
- Rollovers to and from Self-Managed Super Funds (‘SMSF”)
- Rollovers of Death Benefit Income Streams
- Australian Taxation Office (“ATO”) Release Authorities
How does SuperStream Rollover V3 impact Netwealth clients?
All superannuation funds, including self managed super funds (SMSF), are required to be compliant with Rv3 by 30 September 2021.
For Netwealth superannuation members, these legislative changes will see ATO Release Authorities and Death Benefit Income Stream rollovers being processed in a more timely and efficient manner.
Rv3 changes will have the largest impact on Netwealth clients who would like to rollover cash or assets to/from their SMSF.
How do SMSF trustees become compliant SuperStream Rollover V3?
From 30 September 2021, SMSF Trustees will be required to register a SuperStream Electronic Service Address (“ESA”) which facilitates rollovers and release authority processing and register their SMSF’s bank details with the ATO prior to instructing a rollover to/from an SMSF.
What is a SuperStream Electronic Service Address (“ESA”)?
Several SMSF messaging providers have services which can assist SMSFs with SuperStream processing. An ESA is an address that is used to identify the service provider when using SuperStream.
An ATO register of SMSF messaging providers and the services they provide can be found here.
Whilst Netwealth provide an ESA for our SMSF wrap account clients, this can only be used to receive contribution information only from another provider. In order for Netwealth to facilitate a rollover to an SMSF, the fund ESA and bank account will need to be registered with the ATO.
Most SMSF software providers used by administrators and accountants will offer SuperStream services and can provide an ESA to meet these requirements. We recommend that our clients contact their SMSF administrator or accountant to check whether their services provide the use of an ESA to meet these requirements.
How to register or update details with the ATO?
Update the details of the SMSF:
- Through a registered agent,
- By phoning 13 10 20 – you must be the authorised contact for your SMSF, or
- By lodging the paper form
How to request a rollover from a Netwealth Super to a SMSF?
Legislation requires Netwealth to electronically verify the SMSF details prior to actioning any rollover.
If we are unable to complete this verification, delays are likely to be experienced. To avoid delays, please ensure bank details and an Rv3 ESA are registered with the ATO prior to transfer.
Electronic verification
Legislation requires Netwealth to electronically verify the SMSF details prior to actioning any rollover. The electronic verification checks:
- The registered ABN for the SMSF (compliance check that the fund meets minimum legislative regulatory requirements),
- The registration of a member within the fund,
- The SMSF has registered an ESA which is able to facilitate rollovers and release authorities, and
- The bank details requested for any rollover are registered with the ATO and valid.
Timeframes
Legislation (SIS Reg 6.34A) requires trustees (in most cases) to act on a request to rollover by no later than 3 business days following receipt and the completion of the rollover (make payment and send electronic confirmation) no later than 3 business days following receipt of any required proceeds from sale.
Given the SuperStream timeframes to confirm a rollover are much tighter than those previously expected, we would recommend trustees plan ahead, where possible, to ensure that these can be met.
Cash and in-specie (asset) rollovers and benefit payment form
Netwealth Super members can instruct a cash and/or in-specie rollover to their SMSF by completing a benefit payment form. This form allows members to request a cash and/or in-specie (asset) rollover to their SMSF.
Electronic verification is required prior to rollover (see above).
For rollovers into a Netwealth Wrap (Wealth Accelerator) account in the name of the SMSF, we recommend registering the SMSFs Netwealth weblink bank account details with the ATO prior to requesting the rollover. The weblink bank account is a designated bank account held within the WRAP account, which allows for payments to be made directly into a Netwealth account.
To find the designated weblink bank account details:
Netwealth clients can find their designated weblink bank account details by referring to the “Welcome Letter” provided by Netwealth on inception of the SMSF WRAP account; or
Netwealth clients or their adviser can find the designated weblink bank account through the Netwealth online Portal. This can be found by logging into the client “Portfolio” and selecting the icon:followed by the 'Contribute' option.
Cash rollovers using a SMSF service provider
A member can initiate a cash rollover via their SMSF ESA service provider (your adviser, SMSF administrator or accountant maybe able to assist). This will provide Netwealth with an electronic instruction to process the cash rollover to the SMSF. Following receipt, Netwealth will sell down the assets in the account in full before rolling over the cash to the registered bank account and confirming electronically.
Instructing a rollover via this method will result in the sale of the assets in the account.
For clients wishing to rollover assets in-specie to their SMSF, a benefit payment form must be completed (see above).
Cash rollovers using My.Gov.au
A member can initiate a cash rollover via My.Gov.au. This will provide Netwealth with an electronic instruction to process the cash rollover to the SMSF. Following receipt, Netwealth will sell down the assets in the account in full before rolling over the cash to the registered bank account and confirming electronically.
Where a SMSF has been recently be established, there may be some slight delays before rollovers can be requested to the SMSF
Instructing a rollover via this method will result in the sale of the assets in the account.
For clients wishing to rollover assets in-specie to their SMSF, a benefit payment form must be completed (see above).
How to request a rollover from your SMSF to Netwealth Super?
Cash rollovers
Given most members of SMSFs are also either the trustee or director of the corporate trustee to their SMSF, they can instigate the rollover directly. Prior to rollover, speak to any relevant adviser, administrator or accountant to ensure they are prepared for the intended rollover. It may take a little time for them to work out the components so it is best to start this prior.
From 1 October 2021, cash rollovers to Netwealth Super should be made via SuperStream. To do this, provide the SMSFs ESA service provider with Netwealth's ABN 94 573 747 704 and the Unique Superannuation Identifier (“USI”) for the Netwealth account. In most cases this will be NET0017AU, however this is a full list of Netwealth's USIs:
USI Product
NET0017AU Netwealth Superannuation Master Fund Personal Super
NET0018AU Netwealth Superannuation Master Fund Employer Sponsored Super
NET0020AU Netwealth Superannuation Master Fund Term Allocated Pension
NET0019AU Netwealth Superannuation Master Fund Transition to Retirement Income Stream
NET0021AU Netwealth Superannuation Master Fund Standard Income Stream
The SMSFs ESA provider will provide our registered bank account details for SuperStream rollovers and provide the required rollover benefit statement electronically via SuperStream.
Once paid, a rollover benefit statement must be sent either electronically via SuperStream, or by using a paper rollover benefit statement or death benefit rollover statement to remittance@netwealth.com.au or Netwealth Investments Ltd, Reply Paid 336, South Melbourne VIC 3205.
In-specie (asset) rollovers from a Netwealth Wealth Accelerator (Wrap) account
To request a cash and/or in-specie rollovers from a SMSFs Netwealth Wealth Accelerator (Wrap) account, use the Wrap Withdrawal form. Where this instruction requests the closure of the SMSFs Wrap account, do not provide a rollover benefit statement (RBS) upfront. We will confirm the value of the transfer once complete and will require a rollover benefit statement to be provided as soon as possible.
As in-specie rollovers fall outside of the SuperStream regulations, a paper rollover benefit statement or death benefit rollover statement should be sent to remittance@netwealth.com.au or Netwealth Investments Ltd, Reply Paid 336, South Melbourne VIC 3205.
The cash component of the rollover can be confirmed electronically, however we will accept a paper rollover benefit statement or death benefit rollover statement.
The rollover benefit statement (RBS), either electronic or paper, should be provided as soon as possible following processing. We would therefore strongly recommend speaking any relevant adviser, accountant and/or administrator prior to instructing the rollover so they can begin the rollover process.
In-specie (asset) rollovers from an external provider (assets only)
To request an in-specie rollovers from an external provide, use the Super in-specie contribution form to request the transfer of some or all of the SMSFs assets to a Netwealth Super account. Once the transfers are complete, we may require a paper rollover benefit statement or death benefit rollover statement should be sent to remittance@netwealth.com.au or Netwealth Investments Ltd, Reply Paid 336, South Melbourne VIC 3205.
In-specie transfers can only be rolled into an accumulation (Personal or Employer Sponsored Super) account.
A rollover benefit statement (RBS) is required before we can allow any rollover into pension or withdrawal from the account.
Given the time taken to complete in-specie transfers is difficult to control where there are multiple custodians and product issuers, where some or all of the investments within the SMSF are held in pension/s; careful consideration of the tax implications of being in accumulation is recommended.
An alternative option available, is having the investments initially transferred into a Wealth Accelerator (Wrap) account owned by the SMSF, before requesting the in-specie rollover. This allows the SMSF trustee, with the assistance of Netwealth more control on the in-specie rollover turnaround time and so long as the rollover benefit statement is provided quickly, it may significantly reduce the risks associated keeping the benefits in accumulation.