Speaking to SMSF Adviser, BDO superannuation partner Shirley Schaefer said the three-day time frame under the SuperStream standards is proving difficult for many funds. 

“If an APRA fund is requesting a rollover from an SMSF, getting that done within the time frame would be impossible for nearly every SMSF, even those with the big administrators I would think, because you’ve got to collect all the information,” Ms Schaefer explained.

“I know from an accountant’s point of view, rather than have the rollover be requested from them, they would prefer to push the rollover to the APRA fund because that way your three-day time limit isn’t really there until you’ve got all your information and you can control it a lot more.”

Ms Schaefer reminded SMSF professionals that despite the difficulties in meeting the time frames, if rollovers and release authorities occur outside of the time frames, this is a breach of the payment standards.

“One would hope it wouldn’t be a material breach of the payment standards, but there will be an expectation that auditors will be checking those time frames in 2022 audits,” she cautioned. 

Ms Schaefer said SMSFs on the major super fund platforms are likely to have fewer issues with processing rollovers under the standards because of the systems and notifications they have in place. 

“However, if someone has an external SuperStream provider, something like Australia Post, the trustees probably get emails from Australia Post when the information comes, but do they check it regularly and do they action it?” she questioned. 

“I can see the potential for lots of problems. If you don’t have a copy of the original notification, how do you know if you’re outside the time frames? The practical application of doing that is going to be interesting when it comes down to it, particularly those who are not using mainstream superannuation software providers.”