As part of the budget, the government announced that it would provide $19.3 million over three years from 2020–21 to the ATO, including $12.6 million in capital funding, in order for it to send electronic requests to superannuation funds for the release of money required under a number of superannuation arrangements.

The budget papers stated that the change, which would take effect from 31 March 2021, would be implemented by expanding the electronic SuperStream rollover standard used for the transfer of information and money between employers, superannuation funds and the ATO, the budget papers stated.

However, the papers also stated that the extension of SuperStream standards to SMSF rollovers would delay the start date of SMSF rollovers in SuperStream until 31 March 2021, from its current commencement date of 30 November this year.

The ATO stated that, as the enactment of this announcement is dependent on regulations being updated, the ATO stated that it is “continuing to work towards the current effective start date for SMSF rollovers in SuperStream which is 30 November 2019”.

The extension of SuperStream standards to SMSF rollovers was a welcome move by the SMSF industry, as it means that rollovers to and from SMSFs will occur within three business days, rather than weeks or ever months.

SuperConcepts’ Peter Burgess previously told SMSF Adviser that SMSF trustees will need to ensure that the ATO has their electronic service address and bank account details in order for the rollover to occur under the new system.

“Now in my view, that’s a small price to pay to ensure that the rollover does occur within three business days,” he said.

For SMSF professionals who advise on setting up SMSFs, Mr Burgess said that it’s a good idea to change their approach for establishments now by ensuring that they’re providing information to the ATO that’s required for these rollovers.