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  • SMSF Rollovers and Release Authorities v3 Co-design Group key messages 13 September 2021

    Welcome

    The chair welcomed attendees to the meeting

    Onboarding issues

    Discussion focused on onboarding issues relating to unsuccessful release authorities outcome response (RASOR) and Release Authorities error response (RAER).

    Release Authorities Outcome Response

    When the ATO is unable to process a release authority statement (RAS) – either due to a validation error, or mismatch of the product/account/member data – The ATO will send an unsuccessful Release authority statement outcome response (RASOR) to the fund (maximum severity ‘error’).

    User guide content advises the fund should correct the data, generate a new message and send the new message to the ATO. This would be a new RAS, separate from the original and (potentially) with a separate conversation ID (but would need to maintain the ATO reference number/initiator conversation ID, as per the original RA).

    Post meeting note

    ATO confirmed that given the TFN is not mandatory this cannot be used as the only parameter for matching. The ATO re-examined our original requirements - our downstream processes rely on both the transferring and receiving fund client identifiers in the RAS mirroring those in the RA.

    In particular ATO-initiated default elections (for excess non-concessional contributions and excess non-concessional contributions tax), auto-identify accounts that can be nominated to release monies. If that account does not have money or has had a partial release reported (on all products except First Home Super Saver Scheme), it will be skipped in favour of the next eligible account. Therefore, the integrity of account numbers (and certainty of account identification) is a critical aspect in our decision flows identifying eligible accounts.

    This is to avoid the situation where the ATO repeatedly nominates the same account despite a previous partial/nil release.

    The ATO will update the User Guide to be clear on the requirements as a priority, as well as adding FAQs to cover these scenarios.

    Onboarding issues – Release Authorities Error Response

    The ATO would like to understand the level of data sent back to the ATO when funds and gateways reject a RA within the Release Authorities Error response (RAER).

    The ATO must communicate to the individual when amounts cannot be released, and we need to ensure we can differentiate between a validation error (we need to correct and re-send the original RA) and a valid reason for not releasing money (initiate downstream processes to release money from a different account).

    Fund response: Fund representatives advised that they use one of the four codes defined in the User Guide when unable to release.

    Gateway response: gateway representatives advised that they would issue a validation error without the full member information provided. They did note however some gateways will not and still send the message to their funds.

    ATO confirmed this is acceptable as the response from the fund will still enable our system to undertake the correct actions.

    Wrap up and close

    The Chair thanked the group for their attendance and participation.

      Last modified: 12 Oct 2021QC 67018