Super Stream – what is it and how does it work Super Stream: Streamlining the Superannuation System Introduction Super Stream is an Australian Taxation Office (ATO) initiative designed to enhance the efficiency of the superannuation system. A key component of Super Stream is the release authorities managed by Self-Managed Super Funds (SMSFs) through the MyGov […]
Super Stream – what is it and how does it work
Super Stream: Streamlining the Superannuation System
Introduction
Super Stream is an Australian Taxation Office (ATO) initiative designed to enhance the efficiency of the superannuation system. A key component of Super Stream is the release authorities managed by Self-Managed Super Funds (SMSFs) through the MyGov application. The ATO sends these notices to super funds, authorizing the release of a member’s superannuation due to specific triggers.
Types of Release Authorities
Super Stream has expanded to allow certain release authorities to be issued electronically to super funds via the Super Stream rollover messaging, which is accessible through MyGov. The types of release authorities include:
| Type of Release Authority | Description |
|---|---|
| Excess Concessional Contributions (ECC) | Contributions exceeding the concessional contributions cap |
| Excess Non-Concessional Contributions (ENCC) | Contributions exceeding the non-concessional cap |
| Excess Non-Concessional Contributions Tax | Tax on the excess non-concessional contributions |
| Division 293 due and payable | Additional tax for high-income earners |
| Division 293 deferred debt | Deferred tax debt under Division 293 |
| First home super saver scheme | Funds released for first home purchase |
Process and Timeframes
When an SMSF member elects to pay a super release via their SMSF holdings through MyGov, they receive a release authority message in Super Stream. This is often prompted by a letter or electronic message from the ATO, indicating excess super contributions or a Division 293 payable notice due to the member’s income exceeding $250,000 in a financial year.
Release Authority Process:
- Notification: Member receives release authority via MyGov.
- Action Required: Member processes release authority within the required timeframe.
- Payment: Super funds have 10 business days to pay the ATO the lesser of the stated amount or the total super interest available.
- Response: If unable to release funds, the super fund sends an error message to the ATO.
Possible Error Responses:
| Error Code | Reason |
|---|---|
| Member not found with supplied information | The member details provided do not match records. |
| No longer a member of the superannuation fund | The member has exited the super fund. |
| Release authority could not be processed | Super fund rules prevent the release. |
| Account closed | The provided member’s account is 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 whether the RAS was successful or unsuccessful.
Release Authority Timeline:
Conclusion
Super Stream release authorities are essential for ensuring the efficient and accurate release of members’ funds within the superannuation system. Super funds must adhere to the specified processes and timeframes to maintain compliance and provide efficient service delivery.
ADDITIONAL INFORMATION:
Contact My SMSF – Contact Us | SMSF Setup, SMSF Accounting and SMSF Loans (mysmsfproperty.com.au)
ATO SMSF Contributions- ATO Super Stream
