First introduced in 2015, SuperStream is a government standard for processing superannuation payments electronically in a streamlined manner. Currently, SuperStream can only process rollovers between two APRA funds electronically but a change coming into effect on 30 November 2019 will now see this process extend to self-managed super funds (SMSF). This means rollovers between an APRA fund and an SMSF can be processed through SuperStream later this year, and the time taken could even be reduced to three days.
The streamlining of the rollover process between all funds aims to increase efficiency and reduce compliance costs. An example of this is the removal of the requirement to draw a cheque when rollovers are made from an SMSF to an APRA fund. Further, direct transfers between funds will give greater confidence when tracking the whereabouts of your money.
For a fund to receive a rollover, trustees will have to provide the ATO with the fund’s requested information – such as ABN, bank account details and internet protocol address – at least 10 business days before the fund receives the rollover.
Setting up an SMSF fund is the simplest step. Establishing a fund which delivers you consistent returns from your investments is much more difficult.
Investing successfully involves determining precise goals and picking investments which will effectively achieve those goals. The advantage of SMSFs is that you can build a portfolio which reflects your short-term and long-term goals in response to changing market conditions.
In an SMSF fund, your investment options are:
Australian and international shares (listed and unlisted)
Residential or commercial property
Cash and term deposits
Fixed income products
Physical commodities
Property
Collectibles
Before you begin investing, consider what might be the best way to diversify your portfolio. How you portion your investments will depend on your funds, the market, and your goals. Regardless of what your plan is, diversification should be a priority.
Choosing an SMSF as opposed to an industry or retail super fund provides you with more flexibility, but also with more responsibility. Researching before investing is key if you want the best out of your SMSF.