Death benefit rollover statement
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
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When you are rolling over a super death benefit to another super provider you are required to use SuperStream to send both the information and payment to the receiving super provider.
Where you are unable to send the information electronically via SuperStream, or you are undertaking a death benefit rollover for a dependent child of a deceased member, use the DBRS form.
Note: Where you are rolling over a death benefit for a dependent child of a deceased member you must, as soon as practicable after processing the rollover using Super Stream, complete the DBRS and send this to the receiving fund.
Statements to members or beneficiaries
If you give a statement to the receiving fund using an electronic DBRS in SuperStream or the paper DBRS, you must also give a statement to your member, or dependant beneficiary, within 30 days of the rollover payment. Use the DBRS, or a similar form you create that includes the same information. You do not need to include the instructions at the top of the death benefit rollover statement form.
Payments that require a Death benefit rollover statement
Use a DBRS when an eligible dependant beneficiary is:
- a member who is rolling over an existing death benefit income stream or interest into a super account with another fund
- a non-member who is requesting their death benefit entitlement be rolled over to a new fund for immediate cashing; this means either
- paid as a lump sum out of the super system
- paid out as a death benefit income stream in retirement phase.
Penalties apply if you make a statement in a DBRS that is false or misleading.
- PS LA 2012/4 – Administration of penalties for making false or misleading statements that do not result in shortfall amounts.
Payments that don’t require a Death benefit rollover statement
When you move an amount from one super account to a different super account held by the same trustee (or RSA provider), you don’t need to provide a Death benefit rollover statement as there is only one trustee involved.
Instructions for completing the Death benefit rollover statement
If your member, or another eligible dependant beneficiary, asks you to roll over parts of their superannuation death benefit to more than one fund, you must complete separate fund and member statements for each rollover payment.
Section A: Receiving fund
Complete all the details of the super fund and product you are paying the rollover to, including their Australian business number (ABN) and their Unique superannuation identifier (USI).
If you are a trustee of an APRA regulated fund, the Fund validation service (FVS) will provide details of the receiving fund if the receiving fund is an APRA regulated fund.
At label 4b Member client identifier, provide the member client identifier used by the receiving fund to uniquely identify their member. Some funds include the member’s account number in the member client identifier.
The label may be left blank if the fund does not have a USI or a member client identifier, or your reasonable efforts have been unable to obtain this information.
Section B: Member’s or beneficiary's details
Provide the following information about the member or death benefit beneficiary you are rolling over the payment for:
- full name
- date of birth
- residential address.
You must give this information to the receiving fund unless you do not have the information. For example, if you only hold a postal address for the member or beneficiary, then you need to leave the residential address blank.
You must provide the member or beneficiary’s tax file number (TFN) on the Death benefit rollover statement unless one of the following exceptions applies:
- you do not hold a TFN for the member or beneficiary
- the member or death benefit beneficiary has requested in writing that you not provide their TFN to the receiving fund.
If you aren’t providing their TFN, you should explain to the beneficiary that there are significant consequences for them, and the receiving super fund, including additional tax deducted from payments made from the receiving fund.
Section C: Death benefit rollover transaction details
11 Income stream taxation indicator
Print the relevant code in the box provided.
Income stream taxation indicator codes
Code Benefit type
P Death benefit to a dependant where:
- the deceased member died aged 60 years or over, and/or
- the dependant is aged 60 years or over
Q Death benefit to a dependant where:
- the deceased member died aged under 60, and
- the dependant is aged under 60.
12, 13 and 14
You only need to complete questions 12, 13 and 14:
- if you are not providing the information at item 12 to the receiving fund using the SuperStream standard but you are unable to prevent the death benefit rollover from being sent to the receiving fund using SuperStream, or
- for a dependant child of a deceased member where the income stream is not a reversionary income stream and you have not started paying an income stream to the child (refer to Section D).
Provide the following information:
- TFN of deceased member
- full name of deceased member
- date of birth of deceased member
You must provide the deceased member’s tax file number (TFN) on the DBRS unless one of the following exceptions apply:
- you do not hold a TFN for the deceased member
- the deceased member has requested in writing that you not provide their TFN to the receiving fund.
You must give this information to the receiving fund unless you do not have the information.
15 Service period start date
The service period start date relates to the deceased member and is usually either:
- the first day of the first period of employment that the lump sum relates to if the deceased member was employed when some or all of the lump sum accrued
- the earlier of the following if the deceased member was not employed when some or all of the lump sum accrued
- the date when the deceased member joined your fund
- if the lump sum is attributable to an earlier lump sum previously rolled over, the first day of the service period of the earlier lump-sum.rollover
16 Tax components
Complete the following labels:
- Tax-free component
- KiwiSaver tax-free component
- Taxable component which may include both the
- element taxed in the fund
- element untaxed in the fund
- Tax components total.
The sum of the four tax components must be equal to the tax components total. The amount of the tax components total must be equal to the amount of the rollover being paid.
Make sure you apply the proportioning rule to the tax components if you are not rolling over the member’s full interest in your super fund.
The tax components help the receiving fund work out the amount of income tax the member or death benefit beneficiary will be liable for when they are paid a benefit from the amounts being rolled over.
The tax-free component consists of the crystallised and contributions segments of the rollover benefit and the taxable component is the total value of the rollover less the value of the tax-free component and the KiwiSaver amount. You must maintain a record of any KiwiSaver amounts either paid directly from New Zealand under the Trans-Tasman retirement savings portability arrangements or paid to you by another super fund in a previous rollover transaction.
The KiwiSaver tax-free amount is the entire KiwiSaver amount excluding any part of the contribution the member has previously shown to be a returning Australian-sourced amount – which is generally an amount that was previously received by a participating KiwiSaver scheme from an Australian super provider and was originally accrued in an Australian complying super fund.
A KiwiSaver amount cannot be rolled over to a self-managed super fund (SMSF).
Rollovers from fully taxed super funds
Any untaxed element in the lump sum being rolled over which arises because the transferring fund has applied section 307-290 of the Income Tax Assessment Act 1997 (ITAA 1997) due to having claimed (or will be claiming) deductions for premiums for certain types of insurance under section 295-465 or 295-470 of the ITAA 1997 can be disregarded.
It is the Commissioner's view that in these circumstances, there is insufficient connection between any deductions claimed by the transferring fund and any lump sum benefits paid by the receiving fund from the dependent beneficiary's new pension for an untaxed element to arise.
Therefore when completing item 16 of the death benefits rollover statement, it is not necessary to include an element untaxed in the fund.
Anthony is 57 and a death benefit beneficiary. Anthony’s spouse was 64 when they died.
Anthony chooses to rollover the death benefit from their SMSF (a fully taxed fund) to an APRA regulated fund and start a pension in the APRA regulated fund.
The death benefit is $200,000 and has a tax-free component of $10,000. As the SMSF had claimed deductions for death and disability insurance; applying section 307-290 of the ITAA 1997, an untaxed element arises of $1,000.
When completing the death benefit rollover form:
At Label 11 the trustee will enter code Q
At Label 16 the trustee will report:
a tax free component of $10,000 and
a taxable component – element taxed in the fund of $190,000.
Rollovers from an untaxed or hybrid fund
It is only necessary to report an element untaxed in the fund to the extent it is not determined under section 307-290 of the ITAA 1997.
This element cannot exceed the untaxed plan cap for the particular financial year. If you are rolling over an amount from an unfunded scheme, you must withhold from any amount in excess of the cap at the top marginal tax rate plus the Medicare levy and remit that amount to us. You then add the amount that remains after the tax is withheld to the tax-free component of the rolled over amount.
The cap is indexed each financial year.
On 6 January 2014 John asked his unfunded super scheme to rollover his super interest of $1.5 million, being an element untaxed in the fund. The untaxed plan cap for 2013–14 is $1,315,000 because the rollover exceeds $1,315,000, the scheme withheld tax of $86,025 which is 46.5% of the $185,000 in excess of the $1,315,000 cap.
The scheme then rolled over the remaining entitlement of $1,413,975 ($1.5 million less tax withheld of $86,025) and reported the following amounts on the RBS to the receiving fund with the payment:
End of example
- a tax-free component of $98,975
- an element untaxed in the fund of $1,315,000
17 Preservation amount
Complete the following labels:
- preserved amount
- KiwiSaver preserved amount
- Restricted non-preserved amount
- Unrestricted non-preserved amount
- preservation amounts total
The sum of the four preservation amounts must be equal to the preservation amounts total. The preservation amounts total must equal the amount of the rollover being paid.
Section D Dependent child death benefit details
Only complete this section for death benefit rollovers for a dependent child of a deceased member where:
- the income stream is a not a reversionary income stream, and
- you have not commenced paying an income stream to the child.
A dependent child who is an eligible beneficiary to rollover the death benefit is a child of the member who:
- is under 18 years old
- who is between 18 and 25 years old and financially dependent on the member
- has a permanent a disability.
Value of interest at death
You must include the value of the interest at the date of death of the deceased member including the retirement phase value (RPV) and accumulation phase value (APV). The value of the super interests at the time of death includes any investment earnings that accrued to the deceased member’s interest between the date of death and the date the dependent child is entitled to be paid the death benefit income stream. This does not include earnings for an amount paid under a life insurance policy or an amount arising from self-insurance. If the interest in wholly in either the accumulation or retirement phase, enter $0 for the other phase field.
You must also include the dependent’s share of the deceased member's superannuation death benefit. Enter a figure as a percentage in the box provided.
If the accumulation phase interest and the retirement phase interest are being rolled over separately, you will need to complete two separate rollover death benefit forms.
This information is required by the receiving fund for transfer balance cap purposes.
Section E: Transferring fund
As the payer of the rollover, provide your accurate and complete details in section E, including your ABN and contact details.
Section F: Declaration
- There are two alternative declarations
- Use the first declaration if you are the trustee of the transferring fund.
- Use the second declaration if you have been authorised to act as an agent for the trustee in completing the RBS.
- Print your full name, then sign and date the declaration.
Before you sign the declaration, check that you have provided true and correct information. Penalties may be imposed for giving false and misleading information.
Where and when to send an RBS
Note: Do not send a copy of the statement to the ATO.
If the rollover data standard does not apply to the transaction you must do all of the following:
- Send the statement to the receiving fund within seven days of paying them the rollover.
- Provide a copy of the statement to your member or death benefit beneficiary within 30 days of paying the rollover to the receiving fund.
- Keep a copy of the statement in your records for five years.
If the rollover data standard does apply to the transaction, you must do all the following:
- Comply with the requirements of the data standard for the fund-to-fund interaction (do not send the rollover death benefit statement form to the receiving fund).
- Use the death benefit rollover statement only to provide a statement to the member or death benefit beneficiary in section B within 30 days of paying the rollover.
- Keep a copy of the member statement in your records for five years.
These forms are to be used by trustees of superannuation funds or retirement savings account (RSA) providers when rolling over benefits to another fund. (NAT 70944 and NAT 74924).Last modified: 17 Sep 2021QC 28175