A rollover is when a member transfers some or all of their existing super between funds.
On this page:
Receiving a rollover
Before rolling over benefits to your SMSF, APRA-regulated super funds check with our systems to confirm that the person requesting the rollover is a member of your fund. So make sure your fund membership details are up to date in our systems and notify us of any changes.
A rollover from another fund is not included in the assessable income of your fund, unless the rollover amount includes an element untaxed in the fund.
If it does contain an untaxed element, you include the amount of that element in the assessable income of your fund – up to the untaxed plan cap amount – in the financial year the rollover occurs.
If the untaxed element exceeds the untaxed plan cap, the originating fund should withhold tax – at the top marginal rate plus Medicare levy – from the amount over the cap before releasing the rollover to your fund. You add this now-taxed amount to the tax-free component of the rolled-over amount.
Example: Rollover with an untaxed element
On 5 September 2014, Tom asks his fund to roll over his super interest of $1.5 million. This is an untaxed element. The untaxed plan cap amount for 2014–15 is $1.355 million, meaning that Tom’s rollover amount exceeds the cap by $145,000. The originating fund must withhold tax of $71,050 (49% of $145,000).
The amounts reported by the originating fund on the rollover benefits statement will be $73,950 ($145,000 – $71,050) at the ‘tax-free component’ label and $1.355 million at the ‘element untaxed in the fund’ label. Tom’s SMSF will report the $1.355 million as income at the ‘personal contributions’ label in the SMSF annual return.
Making and reporting a rollover
When rolling over your members’ benefits to another super fund, you need to:
- confirm that the receiving fund is complying – you can check using Super Fund LookupExternal Link
- complete a Rollover benefits statement and:
- give the completed statement to the receiving fund, either with the payment or within seven days
- give a copy to the member within 30 days
- keep a copy for your records for five years.
Ensure you report all member contributions in your SMSF annual return, even if they were rolled out to another fund later. (This is different to the process that applied before 1 July 2013.)
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