Changes to how we process SMSF rollovers on FirstWrap

SuperStream is the system that employers, super funds and the ATO all must use to send both money and information about individuals electronically to one another securely.

Using SuperStream allows money and the relevant information to be sent electronically in a standard format across multiple institutions.

Following updates to the Superannuation Industry (Supervision) Regulations 1994, from 1 October 2021, self-managed super funds (SMSFs) will need to use SuperStream to rollover super (except in-specie rollovers) to or from their funds.

From 1 October 2021, your clients will no longer be able to do the following:

• Rollover funds from their SMSF into their FirstWrap Plus super account via direct debit or cheque.
• Rollover funds to their SMSF from their FirstWrap Plus super or pension account via direct credit without using SuperStream.

Please note that the above changes do not impact members making either personal contributions or lump sum withdrawals. These transactions can still be facilitated by direct credit/deposit or cheque.

SMSFs must still use SuperStream for contributions made to the SMSF from an employer that is not a related party of the SMSF.

SMSFs are still exempt from using SuperStream for all other contributions made to the SMSF, such as personal contributions and superannuation guarantee contributions made by a related party.

From 1 October 2021, members will need to use SuperStream to roll over any super money to or from their self-managed super fund (SMSF).

To use SuperStream the SMSF will need:

• an Electronic Service Address (ESA) alias. (This is a special internet address (that is different to an email address) that helps SuperStream transactions get to the right destination),
• an ABN,
• a unique superannuation bank account in the SMSF’s name, for superannuation payments, and
• up-to-date details recorded with the ATO.

Given the complex nature of these transactions, we recommend that members consult with either their financial adviser or tax accountant if they have one.

To receive SuperStream data a self-managed super fund (SMSF) needs an Electronic Service Address (ESA) alias.

The ESA alias is a special internet address (that is different to an email address) that helps SuperStream transactions get to the right destination.

Members can obtain an Electronic Service Address from an SMSF message provider or through their SMSF administrator, tax agent, accountant or some banks.

An SMSF message provider can provide an Electronic Service Address alias, which acts as a service that receives and sends messages to and from super funds and/or employers.

Members can find a list of SMSF message providers on the ATO website.

A rollover is a movement of money or assets between superannuation funds, and as an IDPS is not a superannuation fund we are unable to offer direct rollovers to these accounts.

SuperStream requires the payment of money that is moved to or from an SMSF to be deposited directly to the unique superannuation bank account of the receiving superannuation fund. An IDPS SMSF account is an investment account held by an SMSF trustee, it is not a superannuation fund itself.

In order to further accommodate the SuperStream requirements, we require an uplift to the processes relating to rollovers between Investor Directed Portfolio Service accounts and Self-Managed Super Funds.

We acknowledge that these new processes may require additional time on your part and apologise for any inconvenience.

We are currently reviewing our systems to provide a more streamlined solution in the future.

Members should contact their SMSF message provider to obtain a payment reference number. 

This message will occur when Colonial First State begins preparing to process a rollover. We use an ATO service to validate the SMSF details of a member and their association with an SMSF.

As part of their processes, the ATO will send the member a notification that an enquiry was made on their SMSF.

From 1 October 2021, when this requirement comes into effect, self-managed super funds will be required to use the SuperStream system to send or receive funds, with the exception of personal contributions, which can still be contributed via direct debit or cheque.

From 1 October 2021, when this requirement comes into effect, self-managed super funds will be required to use the SuperStream system to send or receive funds from another super fund. Lump sum withdrawals can still be withdrawn via direct credit or cheque.

If a member is unsure what their ESA alias is, they can speak with their financial adviser or tax agent if they have one.

Alternatively, we recommend that members contact the ATO on 13 28 61 for further information.