SuperStream Self-Managed Super

By Victoria Kogan and Mei Wu

The ATO has updated the change requiring Self-Managed Superannuation Funds (SMSF) to be SuperStream-enabled, providing additional instructions on how to manage release authorities. This is a document allowing money to be released from the fund.

SuperStream-enabled means SMSFs can receive third-party employer contributions and process transactions electronically.

Via the SuperStream Rollover message, processing of release authorities becomes easier and quicker. Consequently, an SMSF will require an Electronic Service Address (ESA) that provides SuperStream rollover services to transact within the SuperStream environment.

Not all ESAs provide SuperStream rollover and release authority services. If your SMSF does not have an ESA from a messaging provider with SuperStream rollover services, members of your fund will not be able to roll the money into or out of your SMSF. Also, your fund will not be able to receive and action release authorities electronically or receive third-party employer contributions.

An SMSF can obtain an ESA from an SMSF messaging provider or through their SMSF administrator, tax agent, or accountant.

EQ8 has registered most of its clients’ SMSF to a new ESA address – BGLSF360. This change has also been communicated to the ATO. Funds impacted will receive a text message or email from the ATO as a security measure.

Rental properties and second-hand depreciating assets

The ATO is reminding taxpayers with a residential rental properties, to take care of when making claims for ‘second-hand depreciating assets’ used in their properties. In most cases, these are items that existed in the taxpayer’s property when they purchased it or were in their private residence (which they later rented out), such as:

1. Flooring and window coverings.

2. Air conditioners, washing machines, alarm systems, spas, pool pumps; and

3. Items used for both the rental property and the taxpayer’s own home.

Since 1 July 2017, taxpayers generally cannot claim the decline in value of second-hand depreciating assets (some limited exceptions do apply). However, this rule does not apply to a property rented out before this date, or if it is newly built or substantially renovated (conditions apply).