What are the Implications of the Revision of Super Fund Lookup?

It seems likely that the process for registering a new SMSF will be altered and the ATO may require further information to be provided and additional requirements to be satisfied in order to filter out SMSFs which have been established solely to facilitate illegal early release schemes. 

The further information and additional requirements are currently being developed.

These further information and additional requirements are likely to increase the time taken between an SMSF registering with the ATO and the issue of the ABN and tax file number of the fund.  This may have practical implications if it is proposed that the SMSF will be undertaking a significant transaction soon after its establishment.

Also, it seems likely that administrators of funds which have received requests to transfer benefits to a SMSF which has “provisional” Super Fund Lookup status will impose even more stringent requirements as part of their processes to confirm the legality of the transfer request (often called “Proof of Identity” processes).

The practical effect will increase the administrative effort required to effect a transfer of benefits to newly registered SMSFs and the time taken to achieve a transfer of benefits.