SFWG minutes, June 2011

2. Review of action items from 30 March 2011 meeting

Action item	30032011/01 ATO to provide an email update to funds at the completion of GIC remediation work.
Status	In progress Carolyn Harris advised the ATO will email funds an update to CRT Alert 04/2011 to advise the completion of GIC remediation work.

Action item	30032011/02 ATO to provide funds with ECT Call Centre scripting
Status	In progress Carolyn Harris advised the ECT Call Centre scripting will be provided shortly.

Action item	30032011/03 ATO to provide a report of 2010 SFWG Annual Review to members
Status	In progress Phil McDonald advised the report will be issued shortly.

Action item	30032011/04 The ATO to review alignment of internal procedures to ensure processing of ECT payments (without the payment reference number) are correctly allocated to the fund member ECT account.
Status	Completed Carolyn Harris advised: The ATO found no evidence of ECT payments (without the payment reference number quoted) going astray. The PRN is now on the form which should negate any risk of payments being allocated incorrectly.

Action item	30032011/05 ATO to investigate providing funds with analysis of fund members included in the tax file number (TFN) notification files.
Status	In progress Carolyn Harris advised further analysis of the member population was underway and would be issued shortly. Note: CRT Alert 20/2011 email issued Friday, 10 June 2011 advised funds of the expected workflow numbers for each fund.

Action item

30032011/06 ATO to review the TFN notification 'please resolve' process to avoid repeated requests to resolve cases where the correct member is known by a different name.

Status

In progress Carolyn Harris advised the ATO is reviewing the TFN notification 'Please Resolve' process to avoid repeated requests to resolve cases where the correct member is known by a different name. Manual review activities we have already completed will reduce this type of work for 2011. For the 2012 Notification process, we are investigating improvements to our processes with the view to reduce or eliminate this type of scenario.

Action item

30032011/07 ATO to provide advice to fund representatives on fund member's obligation to advise the ATO of change of details ie name.

Status

Completed Beverley Easton advised there is no specific legislative requirement for a person to notify the ATO of a change of name within 28 days. Note - SFWG Secretariat email issued Thursday 9 June 2011 confirmed there is no specific legislative requirement for a person to notify the ATO of a change of name within 28 days, funds using the 'please resolve' letters as an opportunity to validate their member records through member contact can not compel the member to update their ATO details. Funds can only promote to the member that they update their ATO details directly by: telephoning 13 28 61 between 8.00am and 6.00pm, Monday to Friday, or completing the Change of details for individuals form (NAT 2817) and sending it to: Australian Taxation Office PO Box 3373 PENRITH  NSW  2740

Action item	30032011/08 ATO to review and advise funds on the correct treatment funds should be applying to: refunds of member entitlements (incorrectly paid to the ATO under section 20C); and associated compensation payment
Status	Completed Beverley Easton advised funds that refunds of member entitlements (incorrectly paid to the ATO under section 20C) should be paid back into the member account in its original component. The compensation payment covering potential loss of earnings and associated costs in opening the account is for the benefit of the member and should be paid into the member account.

Action item	30032011/09 ATO to consider the inclusion within the unclaimed superannuation money (USM) statement specifications, of reporting whether an amount being paid to the ATO as USM is a preserved benefit or otherwise.
Status	In progress Beverley Easton advised technical advice is required to confirm the correct treatments of USM payments to the ATO are a preserved benefit or otherwise Deferred for discussion at agenda item 5 Product update. Note SFWG Secretariat email Thursday 23 June 2011 provided clarification.

Action item	30032011/10 Futureplus to email opssupercrt-rundle@ato.gov.au details of lost member case identified during ATO audit that has been reported as by the fund as 'found' but remains reported as lost, for review of the reporting update process.
Status	Completed John George spoke directly with Sue Pearce of Futureplus this discussion satisfied the item as complete.

Action item	30032011/11 ATO to update funds on progress with our review of the inclusion of new address details obtained from positive member contact through our lost members register (LMR) outbound telephony campaigns.
Status	In progress Beverley Easton confirmed: the capability to capture sufficient information to identify an updated address may be captured as part of outbound telephony campaigns, and that this address could be provided to funds. This will enable lost member statuses to be updated by the funds. Options are being explored currently regarding a timeframe to provide this data

Action item	30032011/12 ATO to provide Colonial First State with a copy of the dummy data file.
Status	Completed Beverley Easton advised SFWG Secretariat email issued Monday 18 April 2011 provided the requested file.

Action item

30032011/13 ATO to provide an update to funds on the release of OOLR: for new lodgements backlogged since January 2010.

Status

Completed Carolyn Harris advised the backlog of outcome of lodgment reports (OOLR) has been completed and current files are being released daily. Funds were advised to email opssupercrt-rundle@ato.gov.au should they identify an OOLR has not been received. A fund representative advised that the original file created date data field of the lodged report was being populated with a default date of '31129999' on the OOLR; this field is their primary means to reconcile OOLR reports with their lodged reports. Phil McDonald advised this data field was not being populated as the data from the lodged report is not stored on integrated core processing (ICP) for inclusion in the OOLR; funds should explore the options of utilising the supplier file reference data field as a tool for reconciliation with reports lodged by funds.

Action item	01062011/01 ATO to discuss the issue raised regarding the effectiveness of the OOLR for report lodgement reconciliation issues with Unisuper. Note - Completed. Funds lodging reports (eg member contribution statement (MCS), LMS, etc., should utilise the supplier file reference data field to uniquely code the report to assist the reconciliation of OOLR with reports lodged.
Responsibility	Phil McDonald

Action item	30032011/14 The ATO to confirm that all backlogged OOLR would be delivered to administrators/funds in separate electronic commerce interface (ECI) transmissions by report template (eg member contribution statement (MCS), co-contribution payment variation advices (PVA), etc)
Status	Completed Carolyn Harris advised this has been completed as part of above release.

Action item	30032011/15 The ATO to review and provide advice on credit interest applicable for a member where their entitlement has been PVA'd by a fund back to the ATO but not yet credited to their account because OOLR delay advising the fund the PVA was rejected.
Status	In progress Technical advice on this issue as not yet been received, but it is expected that any credit interest entitlement would be determined on a case by case basis.

Action item	30032011/16 The ATO to review business processing timeframes on fund claims lodged on behalf of members.
Status	In progress Email to be provided to funds via SFWG secretariat.

Action item

30032011/17 ATO to consider how funds can be assisted with framework for electronic lodgement of the 'approved form' (deduction for personal super contributions).

Status

Completed Beth Barry advised the ATO has considered the most appropriate process for the framework to be provided. It has been decided the framework could be presented in a short form format which can be published on the ATO website. The ATO is seeking volunteers from the SFWG forum interested in following this electronic lodgement path to work with the ATO in determining the type of advisory material that needs to be provided to industry on this. This will be by phone hook up. Expressions of interest are requested by the end of June, emailed to SFWG Secretariat.

Action item	01062011/02 Fund representatives interested in working with the ATO to develop the advisory material for industry to use in relation to the electronic lodgment of the personal super contributions form are to nominate by email to sfwgsecretariat@ato.gov.au
Due Date	30 June 2011
Responsibility	SFWG members

Action item

30032011/18 ATO to review feedback from representatives in relation to the draft deduction for personal super contributions notice and provide advice: can a member lodge a Notice in respect of contributions not yet made; and whether the term '…rolled out…' needs to be expanded by adding amounts withdrawn to ensure proportioning rules are correctly applied to funds.

Status

In progress Beth Barry advised that there had been further questions raised by Alan Harvey identifying the issues for discussion. What does intention to make a contribution mean, at what point in time? The position the ATO is using is reflected in Taxation Ruling 2010/1 that either a deduction had been made or is made with the deduction form. Changes to the form and explanatory material will be made to provide clear instruction. There was discussion around varying the notice and why the ATO had taken this approach that the notice of variation replaces the original notice. In relation to the variation notice this is in response to feedback from members of the SFWG forum. Confusion has been experienced as to what happens when an amount is to be varied, the ATO will look at explanatory material provided and input more examples to make it clearer to all, including the obligations of people making a contribution and wishing to claim a deduction. Beth Barry will discuss specifics with Alan Harvey regarding the questions raised, and then provide a written response which would be included in the minutes.

Action item	01062011/03 ATO to provide confirmation of the advice provided in response to issues raised, in relation to the draft deduction for personal super contributions notice and associated instructions.
Responsibility	Beth Barry

Action item	30062011/03 Onepath to resend portability form fund name issue email to SFWGsecretariat@ato.gov.au
Status	In progress The ATO has identified an issue with the registration of Onepath, which has impacted the fund name data provided to the member and incorporated into the SuperSeeker portability form provided to the fund. The ATO is working through this issue.

Action item

30032011/20 ATO to provide funds with an update on the pay as you go (PAYG) withholding taxation arrangements in relation to superannuation lump sum payments under the Flood Levy legislation.

Status

Completed CRT Alert 19/2011 issued by SFWG Secretariat email Thursday 26 May 2011 provided funds earlier access to schedules. PAYG website information on Schedules will be released mid June 2011. The June 2011 edition of SuperUpdate is expected to be released within the next week and includes an article on Flood Levy. Funds agreed that the information available was comprehensive enough to close this item. Fund representatives raised some questions: What was the reasoning behind putting this into a superannuation environment when funds will have trouble implementing the changes by the due date? Is there any leeway if funds are not able to meet the deadline? Beth Barry advised the first question is one of policy which needs to be raised with Treasury. In response to the second point a fund representative advised that he had received an email stating funds will not be penalised. Other discussion indicated that an application for an extension can be applied for if necessary. While extensions may be sought it was stressed that legislation is in place from 1 July 2011 and that funds need to strive to have systems in place for this date. Note: Funds with difficulties implementing the new withholding tax rates (incorporating the flood levy) are asked to write to withholding@ato.gov.au advising the expected implementation date.

Action item

30032011/21 ATO to provide an update on the progress with the revision of the MCS protocol document.

Status

In progress John George advised: The revised MCS protocol document requires technical clearance before it can be published. This will be completed shortly. The purpose of the document is to provide guidance on MCS reporting. Feedback from members has been incorporated into the previous draft document provided for comment. Note: MCS Protocol Document published on the ATO website as confirmed by SFWG secretariat email 21 July 2011.

Sections within Agenda items

• 1. Opening
• 2. Review of action items from 30 March 2011 meeting
• 3. Budget 2011
• 4. Compliance update
• 5. Product update
• 6. SuperStream update
• 7. Scheduling
• 8. SFWG Program of work 2011-12