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super stream and excess contributions and Div293 Payments

Summary

Super Stream, what is it and how does it work. Using MyGov to manage super rollovers.

 

Super Stream – what is it and how does it work

Introduction
Super Stream is an initiative by the Australian Taxation Office (ATO) to improve the efficiency of the superannuation system. One of its components is the Super Stream release authorities which are managed by SMSFs via the MyGov application. The ATO, sends these notices to super funds to authorize the release of a member’s superannuation due to one of the following triggers.
Types of Release Authorities
Super Stream has been extended to allow certain release authorities to be issued to super funds electronically via the Super Stream rollover messaging accessed via MyGov. Some of the types of release authorities include:
• Excess Concessional Contributions (ECC)
• Excess Non-Concessional Contributions (ENCC)
• Excess Non-Concessional Contributions Tax
• Division 293 due and payable
• Division 293 deferred debt
• First home super saver scheme


Process and Timeframes
Once a SMSF member elects to pay a super release via their SMSF holdings, which is requested via MyGov, they then receive a release authority message in Super Stream. This is often driven by a letter or electronic message that the SMSF members receive from the ATO highlighting excess super contributions, or a division 293 payable notice as the fund members income exceeds $250,000 in a financial year period. Members must take action to process that release authority within the required timeframe. Specifically:
Super funds must, within 10 business days from the date of the release authority:
Electronically pay the ATO the lesser of the amount stated in the release authority or the total amount of the super interest that could be paid at the time. This is done by making a payment from the SMSFs bank account once the RAS payslip is received by the member via the ESA gateway login or by the SMSF administrator.

If super funds; SMSFs; cannot release any money, they must send a release authority error response message with one of the following errors:
a. Member not found with supplied information.
b. No longer a member of the superannuation fund.
c. Release authority could not be processed due to rules within the super fund.
d. The account for the provided member identifier has been closed.
Once the ATO receives the RAS message from the super fund, they will provide a release authority statement outcome response (RASOR) to the super fund advising them the RAS was either successful or unsuccessful.


Conclusion
Super Stream release authorities play a crucial role in the superannuation system, ensuring that members’ funds are released efficiently and accurately. Super funds must adhere to the specified processes and timeframes to ensure compliance and efficient service delivery.
Sources:
SuperStream release authorities – ATO

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