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  • Rollovers

    A rollover is when a member transfers some or all their existing super between funds. You will need to use SuperStream Rollovers v3 for rollovers (other than in-specie rollovers) to or from your self-managed super fund (SMSF).

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    Receiving an SMSF rollover

    Before you can roll over your benefits to your SMSF from another complying super fund, the transferring fund will use the SMSF Verification Service to verify that you are a member of the SMSF and the fund's details. You can check your membership by looking at the fund details screen on ATO Online. You need to make sure your fund membership details are up to date in our systems and notify us of any changes.

    To receive a rollover your SMSF needs to have:

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

    To check if your ESA provider offers SuperStream rollovers, or if you need an ESA provider, see the Register of SMSF messaging providers.

    Processing the rollover

    The transferring fund must ensure the payment and associated message are sent to you within 3 business days of receiving all the required information from the member.

    It is your responsibility to:

    • confirm the payment and associated data has been received within 3 business days
    • allocate the rollover amount to your member's account within 3 business days of receiving the payment and associated details.

    Depending on your software solution, you may be required to alert your SMSF messaging provider that the rollover has been completed. After you check the bank account and allocate the benefits, you can direct your SMSF messaging provider to send an outcome response message.

    Making an SMSF rollover

    When your member wants to roll their benefits out of your SMSF to another super fund, the following steps are required:

    • 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 child beneficiary    

    For information on making a rollover see SuperStream rollovers and release authorities for SMSFs.

    Note: Each rollover message must be linked to a single payment. You cannot send multiple part payments for the one rollover message. If your bank has limits on the amount that can be transferred impacting the amount being rolled out, you may consider the following options:

    • increase your transfer limit with your financial institution
    • change the rollover amount to under your limit and repeat as required
    • change to a different financial institution.

    Correcting a mistake

    If you have made a mistake with the rollover payment, you will need to contact the receiving fund to resolve.

    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 in which 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 the 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 how to report SMSF contributions that you roll over and event-based reporting for SMSFs.

    Last modified: 16 Nov 2021QC 23328