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New SuperStream measures to benefit SMSFs: SPAA
New data transfers standards for rollovers and employer contributions, to be introduced as part of SuperStream, will benefit self-managed super funds (SMSFs), according to SMSF Professionals' Association of Australia (SPAA) technical director, Peter Burgess.
The Government is expected to introduce new mandatory data transfer rules, which will apply to super funds and some employers, from 1 July 2013.
Speaking at the SPAA Technical Conference in Sydney, Burgess said SuperStream would reduce the time it took to rollover funds and process employer contributions, adding SMSFs should not fear the changes.
"Ensuring all rollovers and employer contributions must be accompanied by mandatory sets of data will eliminate the need for SMSF administers to chase up missing data and undertake time consuming reconciliation processes," he added.
It is also expected SuperStream will require SMSFs to have access to the internet and a bank account which can accept electronic fund transfers - requirements deemed by SPAA as reasonable.
However, Burgess said, in a sector as large and diverse as SMSFs, there will be some funds which will not have the capacity to accept data in an electronic form.
"We will continue to work with Government to ensure the new data transfer standards will not impose unreasonable restrictions on these funds," Burgess said.
SPAA also believes excluding SMSFs from the proposed account consolidation measures (which will also be part of SuperStream) made sense.
"Given the large average balance of a SMSF, it is difficult to envisage how a SMSF which has 100 per cent engagement would ever be lost, and therefore it makes sense to exclude SMSFs from measures designed to reduce the number of lost superannuation accounts," Burgess said.
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