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  • Death benefit rollover statement

    Use the death benefit rollover statement (DBRS) form if you are a super provider, administrator, or agent authorised by a provider to advise another fund of the rollover of a death benefit for an eligible dependant beneficiary on, or after, 1 July 2017.

    A super provider is the trustee of a super fund or approved deposit fund or the retirement savings account (RSA) provider.

    Note: When we say ‘super fund’ we are referring to all super providers.

    Next steps:

    Statements to receiving funds

    You must use the DBRS when you pay a death benefit rollover to another super fund.

    Note: If the transferring fund is not able to prevent a death benefit rollover from being sent to the receiving fund using Super Stream, the fund should contact the receiving fund prior to processing the rollover. As soon as practicable after processing the rollover using Super Stream, the transferring fund must complete the DBRS and send this to the receiving fund.

    See also:

    Statements to members or beneficiaries

    If you give a statement to the receiving fund using the DBRS, you must also give a statement to your member, or dependant beneficiary, within 30 days of the rollover payment. Use the DBRS, or a similar form you create that includes the same information. You do not need to include the instructions at the top of the death benefit rollover statement form.

    Payments that require a Death benefit rollover statement

    Use a DBRS when an eligible dependant beneficiary is:

    • a member who is rolling over an existing death benefit income stream or interest into a super account with another fund
    • a non-member who is requesting their death benefit entitlement be rolled over to a new fund for immediate cashing; this means either
      • paid as a lump sum out of the super system
      • paid out as a death benefit income stream in retirement phase.
       

    Penalties apply if you make a statement in a DBRS that is false or misleading.

    See also:

    • PS LA 2012/4Administration of penalties for making false or misleading statements that do not result in shortfall amounts.

    Payments that don’t require a Death benefit rollover statement

    When you move an amount from one super account to a different super account held by the same trustee (or RSA provider), you don’t need to provide a Death benefit rollover statement as there is only one trustee involved.

    Instructions for completing the Death benefit rollover statement

    If your member, or another eligible dependant beneficiary, asks you to roll over parts of their superannuation death benefit to more than one fund, you must complete separate fund and member statements for each rollover payment.

    Section A: Receiving fund

    Complete all the details of the super fund and product you are paying the rollover to, including their Australian business number (ABN) and their Unique superannuation identifier (USI).

    If you are a trustee of an APRA regulated fund, the Fund validation service (FVS) will provide details of the receiving fund if the receiving fund is an APRA regulated fund.

    At label 4b Member client identifier, provide the member client identifier used by the receiving fund to uniquely identify their member. Some funds include the member’s account number in the member client identifier.

    The label may be left blank if the fund does not have a USI or a member client identifier, or your reasonable efforts have been unable to obtain this information.

    Section B: Member’s or beneficiary's details

    Provide the following information about the member or death benefit beneficiary you are rolling over the payment for:

    • full name
    • date of birth
    • residential address.

    You must give this information to the receiving fund unless you do not have the information. For example, if you only hold a postal address for the member or beneficiary, then you need to leave the residential address blank.

    You must provide the member or beneficiary’s tax file number (TFN) on the Death benefit rollover statement unless one of the following exceptions applies:

    • you do not hold a TFN for the member or beneficiary
    • the member or death benefit beneficiary has requested in writing that you not provide their TFN to the receiving fund.

    If you aren’t providing their TFN, you should explain to the beneficiary that there are significant consequences for them, and the receiving super fund, including additional tax deducted from payments made from the receiving fund.

    Section C: Death benefit rollover transaction details

    11 Income stream taxation indicator

    Print the relevant code in the box provided.

    Income stream taxation indicator codes

    Code Benefit type

    P Death benefit to a dependant where:

    • the deceased member died aged 60 years or over, and/or
    • the dependant is aged 60 years or over

    Q Death benefit to a dependant where:

    • the deceased member died aged under 60, and
    • the dependant is aged under 60.

    12, 13 and 14

    You only need to complete questions 12, 13 and 14:

    • if you are not providing the information at item 12 to the receiving fund using the SuperStream standard but you are unable to prevent the death benefit rollover from being sent to the receiving fund using SuperStream, or
    • for a dependant child of a deceased member where the income stream is not a reversionary income stream and you have not started paying an income stream to the child (refer to Section D).

    Provide the following information:

    • TFN of deceased member
    • full name of deceased member
    • date of birth of deceased member

    You must provide the deceased member’s tax file number (TFN) on the DBRS unless one of the following exceptions apply:

    • you do not hold a TFN for the deceased member
    • the deceased member has requested in writing that you not provide their TFN to the receiving fund.

    You must give this information to the receiving fund unless you do not have the information.

    15 Service period start date

    The service period start date relates to the deceased member and is usually either:

    • the first day of the first period of employment that the lump sum relates to if the deceased member was employed when some or all of the lump sum accrued
    • the earlier of the following if the deceased member was not employed when some or all of the lump sum accrued    
      • the date when the deceased member joined your fund
      • if the lump sum is attributable to an earlier lump sum previously rolled over, the first day of the service period of the earlier lump-sum.rollover
       

    16 Tax components

    Complete the following labels:

    • Tax-free component
    • KiwiSaver tax-free component
    • Taxable component which may include both the    
      • element taxed in the fund
      • element untaxed in the fund
       
    • Tax components total.

    The sum of the four tax components must be equal to the tax components total. The amount of the tax components total must be equal to the amount of the rollover being paid.

    Make sure you apply the proportioning rule to the tax components if you are not rolling over the member’s full interest in your super fund.

    See also:

    The tax components help the receiving fund work out the amount of income tax the member or death benefit beneficiary will be liable for when they are paid a benefit from the amounts being rolled over.

    The tax-free component consists of the crystallised and contributions segments of the rollover benefit and the taxable component is the total value of the rollover less the value of the tax-free component and the KiwiSaver amount. You must maintain a record of any KiwiSaver amounts either paid directly from New Zealand under the Trans-Tasman retirement savings portability arrangements or paid to you by another super fund in a previous rollover transaction.

    The KiwiSaver tax-free amount is the entire KiwiSaver amount excluding any part of the contribution the member has previously shown to be a returning Australian-sourced amount – which is generally an amount that was previously received by a participating KiwiSaver scheme from an Australian super provider and was originally accrued in an Australian complying super fund.

    A KiwiSaver amount cannot be rolled over to a self-managed super fund (SMSF).

    Rollovers from unfunded schemes

    An element untaxed in the fund only arises in rollovers from certain unfunded schemes, usually public sector super funds. This element cannot exceed the untaxed plan cap for the particular financial year. If you are rolling over an amount from an unfunded scheme, you must withhold from any amount in excess of the cap at the top marginal tax rate plus the Medicare levy and remit that amount to us. You then add the amount that remains after the tax is withheld to the tax-free component of the rolled over amount.

    The cap is indexed each financial year.

    Example

    On 6 January 2014 John asked his unfunded super scheme to rollover his super interest of $1.5 million, being an element untaxed in the fund. The untaxed plan cap for 2013–14 is $1,315,000 because the rollover exceeds $1,315,000, the scheme withheld tax of $86,025 which is 46.5% of the $185,000 in excess of the $1,315,000 cap.

    The scheme then rolled over the remaining entitlement of $1,413,975 ($1.5 million less tax withheld of $86,025) and reported the following amounts on the RBS to the receiving fund with the payment:

    • a tax-free component of $98,975
    • an element untaxed in the fund of $1,315,000
    End of example

    17 Preservation amount

    Complete the following labels:

    • preserved amount
    • KiwiSaver preserved amount
    • Restricted non-preserved amount
    • Unrestricted non-preserved amount
    • preservation amounts total

    The sum of the four preservation amounts must be equal to the preservation amounts total. The preservation amounts total must equal the amount of the rollover being paid.

    Section D Dependent child death benefit details

    Only complete this section for death benefit rollovers for a dependent child of a deceased member where:

    • the income stream is a not a reversionary income stream, and
    • you have not commenced paying an income stream to the child.

    A dependent child who is an eligible beneficiary to rollover the death benefit is a child of the member who:

    • is under 18 years old
    • who is between 18 and 25 years old and financially dependent on the member
    • has a permanent a disability.

    Value of interest at death

    You must include the value of the interest at the date of death of the deceased member including the retirement phase value (RPV) and accumulation phase value (APV). The value of the super interests at the time of death includes any investment earnings that accrued to the deceased member’s interest between the date of death and the date the dependent child is entitled to be paid the death benefit income stream. This does not include earnings for an amount paid under a life insurance policy or an amount arising from self-insurance. If the interest in wholly in either the accumulation or retirement phase, enter $0 for the other phase field.

    You must also include the dependent’s share of the deceased member's superannuation death benefit. Enter a figure as a percentage in the box provided.

    If the accumulation phase interest and the retirement phase interest are being rolled over separately, you will need to complete two separate rollover death benefit forms.

    This information is required by the receiving fund for transfer balance cap purposes.

    See also:

    Section E: Transferring fund

    As the payer of the rollover, provide your accurate and complete details in section E, including your ABN and contact details.

    Section F: Declaration

    • There are two alternative declarations    
      • Use the first declaration if you are the trustee of the transferring fund.
      • Use the second declaration if you have been authorised to act as an agent for the trustee in completing the RBS.
       
    • Print your full name, then sign and date the declaration.

    Before you sign the declaration, check that you have provided true and correct information. Penalties may be imposed for giving false and misleading information.

    Where and when to send an RBS

    Note: Do not send a copy of the statement to the ATO.

    If the rollover data standard does not apply to the transaction you must do all of the following:

    • Send the statement to the receiving fund within seven days of paying them the rollover.
    • Provide a copy of the statement to your member or death benefit beneficiary within 30 days of paying the rollover to the receiving fund.
    • Keep a copy of the statement in your records for five years.

    If the rollover data standard does apply to the transaction, you must do all of the following:

    • Comply with the requirements of the data standard for the fund-to-fund interaction (do not send the rollover death benefit statement form to the receiving fund).
    • Use the death benefit rollover statement only to provide a statement to the member or death benefit beneficiary in section B within 30 days of paying the rollover.
    • Keep a copy of the member statement in your records for five years.

    More information

    Last modified: 27 Jun 2018QC 28175