Accounting technology in focus amid Superstream proposal

The government's proposed extension of SuperStream to self-managed super fund rollovers will be beneficial for accountants but much depends on the execution, says an accountant.

by | 18 Jul, 2018

Accounting technology in focus amid Superstream proposal

Minister for Revenue and Financial Services Kelly O’Dwyer said in a statement that the reform will allow SMSF members to initiate and receive rollovers electronically between an APRA fund and their SMSF.

The regulations will apply to SuperStream rollovers to or from an SMSF requested on or after 30 November 2019.

The government said the extension will reduce compliance costs for SMSF and APRA trustees by reducing current manual, paper-based processes.

Further, it will allow expediting of rollovers between APRA funds and SMSFs that can currently take months to complete through the paper-based method.

Speaking to Public Accountant, Sky Accountants chief technical officer Ashley Carmichael welcomed the move, but said a lot will depend on the execution.

In particular, he noted that if the right technology is in place and it works well, then it can really deliver the benefits that the government hopes the move will bring.

“What it is going to mean is that a lot of SMSF trustees and their advisers who might have previously lived very much in the paper world are going to have to get themselves sorted. That’s what it comes down to,” Mr Carmichael said.

Mr Carmichael recalled there being “a lot of noise” at the time when the government first brought in SuperStream, and how onerous it was going for employees making contributions through the technology.

But he said that what SuperStream has done is make the process much easier as long as firms are using the right digital tools.

“I suspect it will be the same scenario here that no SMSF trustee and their advisers who are reasonably good with technology won’t find it too hard to adapt and they’ll probably find it beneficial in the long run,” Mr Carmichael said. “It will just be a minority who will find it challenging.”

The consultation will close on 3 August.

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