Your super helpful guide to SMSF rollovers

Rolling over is when you transfer your super from one fund to another. This could be from a self-managed super fund (SMSF) into another SMSF or a regulated fund (like us).

Here’s what you need to consider when rolling over into a regulated fund. Remember, an SMSF might not be right for everyone. Deciding to close an SMSF is an important financial decision, and you’ll need to think about the costs, risks, trustee responsibilities, and insurance implications. Plus, you’ll need to consider your financial objectives, situation, and needs.
 

Key points

• There are different reasons why you might rollover into another fund

• You’ll need to take certain steps for your rollover into another regulated fund to be successful

• We answer some common questions about SMSF rollovers

Why you might consider an SMSF rollover

There are many reasons why you might decide to rollover your super from your SMSF into a different fund:
 

You want to do less admin

Managing an SMSF requires a lot of admin time (over 100 hours a year according to ASIC). So, if you wanted to free up your time to do other things while growing your super, and you don’t want to outsource all the management of your SMSF to a paid third-party, you could rollover into a regulated fund.
 

You want to reduce how much you pay in fees

Running an SMSF could add up over time. So, you could compare the costs of managing your SMSF with the fees and costs of a regulated fund. Remember, the fees of your SMSF and a regulated fund you want to join can vary based on the size, structure, and investments. For example, the Australian Taxation Office published the average SMSF expenses data for the 2022-23 financial year, while the costs of our Future Saver super account will depend on your balance and other factors (you can check out our PDS for more information).
 

You want someone else to manage your investments

If you’re the trustee of an SMSF, you’re responsible for the investment strategy and ongoing investment decisions of the fund. And making sure your investments are optimised for your money goals can be tricky at times. But a regulated fund often has teams of investment experts who do this work for you.
 

You don’t want the legal responsibilities of managing an SMSF

Running your own SMSF comes with extra legal responsibilities you’ll have to manage. You’ll have to make sure your SMSF is compliant with super, corporate, and tax laws. You’ll also be responsible for any penalties if you don’t follow those laws.

On top of all that, your SMSF doesn’t have the same protections as an APRA-regulated fund. For example, you (or a member) can’t submit a complaint against an SMSF to APRA. And if you experience theft or fraud, then you can’t be compensated by APRA for any super lost.

How do SMSF rollovers work?

1.  You request the rollover

You can request a rollover from your SMSF to another fund in writing. Make sure you add all the relevant details, like the fund’s ABN and unique superannuation identifier (USI). This information must be the same as what the ATO and your next fund have. And you need to have your member number from the fund you’re moving to as well.

Super tip: If you’re thinking of rolling over with us, you can find our information on our handy fund details page. And if you’ve already opened an account, you can login to Member Online or the app to find your member number.
 

2. Your trustee actions your request

Once you’ve made your request, the trustee will start the rollover process. If you’re the trustee of your SMSF, this means you must:

• Have enough money in your SMSF bank account to pay the rollover and any fees.

• Check if there’s a daily transfer limit with your bank. You might need to increase this limit or make multiple transfers, depending on the amount.

• Tell your SMSF to send the information required, like your member, fund and payment details, to your next super fund. This information is called a ‘data message’. Your next super fund will need to double-check that all required verification checks are done.

Super tip: You might need to make a payment reference number (PRN). To make a PRN, you use your SMSF’s ABN, four digits to represent the day and month, and a three-digit sequence based on the number of payments you made that day. For example, the PRN for 1 January would be 123465789100101001. This is because 12345678910 is the ABN, 0101 is the date, and 001 is the first payment of that day.
 

3. Your trustee pays your rollover

Your trustee must pay the rollover as soon as possible after sending the data message. And they must send the money by using an electronic funds transfer.

If you’re the trustee, you’ll need to use the Fund Validation Service to double check your next fund’s banking details. When your next fund receives your payment, they’ll let you know if the rollover was a success.

Super tip: Make sure you’re using the correct PRN for each of your payments and that you’re paying the exact amount required. Your PRN should match the one listed on the rollover message sent to your next fund. This can help prevent delays in the rollover process.

What are the legal requirements when rolling over?

If you’re the trustee, you must process the rollover electronically. And you must complete the rollover within three business days after getting all the information you need for the transfer. You need to be able to complete the process with the right systems, otherwise you might receive a compliance breach.

FAQs about SMSF rollovers