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  • Rollovers

    A rollover is when a member transfers some or all of their existing super between funds.

    On this page:

    Receiving a rollover

    Before you can roll over your benefits to your self-managed super fund (SMSF) from another complying super fund, the transferring fund will confirm the person requesting the rollover is a member of your SMSF. You can check your membership by looking at the personal details screen on ATO Online. You need to make sure that your fund membership details are up to date in our systems and notify us of any changes.

    From 1 October 2021, you will need to use SuperStream Rollovers v3 for any rollovers (other than in-specie rollovers) to or from your SMSF.

    To be able to use SuperStream Rollover v3, your SMSF needs to have:

    • an electronic service address (ESA) providing rollover SuperStream services
    • an Australian business number
    • up-to-date details recorded with us, including your SMSF's unique bank account for superannuation payments.

    If your SMSF already has an ESA provider, talk to them about when they will transition to SuperStream. If your SMSF needs an ESA provider, refer to Register of SMSF messaging providers.

    Making a rollover

    When you want to roll your benefits out of your SMSF to another super fund, you need to take the following steps.

    Until 30 September 2021, you need to:

    From 1 October 2021, to roll super benefits out of your SMSF you need to:

    • Use the SMSFmemberTICK system to validate the member’s TFN
    • Use the SMSF Verification Service to verify fund and member details when rolling to another SMSF
    • Use the Fund Validation Service to verify the fund details when rolling to an APRA regulated fund.
    • Make the rollover via SuperStream no later than three business days after receiving all the information required to process the request.
    • When the rollover is a death benefit rollover and the recipient is a dependent adult or child beneficiary, give a Death benefit rollover statement or a statement with the same information as the DBRS to the dependant beneficiary, within 30 days of the rollover payment.

    Reporting a rollover

    A rollover from another fund is not included in the assessable income of your fund, unless the rollover amount includes an untaxed element in the fund.

    If it does contain an untaxed element, you need to include the amount of that element in the assessable income of your fund – up to the untaxed plan cap amount – in the financial year the rollover occurs.

    If the untaxed element exceeds the untaxed plan cap, the originating fund should withhold tax (at the top marginal rate plus Medicare levy) from the amount over the cap before releasing the rollover to your fund. You can then add this now-taxed amount to the tax-free component of the rolled-over amount.

    Example: Rollover with an untaxed element

    On 5 September 2019, Tom asks his fund to roll over his super interest of $1.7 million. This is an untaxed element. The untaxed plan cap amount for 2019–20 is $1.515 million, meaning that Tom's rollover amount exceeds the cap by $185,000. The originating fund must withhold tax of $90,650 (49% of $185,000).

    The amounts reported by the originating fund on the rollover benefits statement will be $94,350 ($185,000 − $90,650) at the 'tax-free component' label and $1.515 million at the 'element untaxed in the fund' label. Tom's SMSF will report the $1.515 million as income at the 'personal contributions' label in the SMSF annual return.

    End of example

    Ensure you report all member contributions in your SMSF annual return, even if they were rolled out to another fund later. This is different to the process that applied before 1 July 2013.

    Transfer balance cap reporting and rollovers

    We strongly encourage you to report the rollover as a commutation via the TBAR where your member rolls the amount into an APRA-regulated fund and starts an income stream there as soon as the rollover occurs.

    If you do not report the rollover to us when it happens, double-counting of your member’s income streams may occur.

    See also:

    Last modified: 17 Aug 2021QC 23328