Show download pdf controls
  • SMSF Rollovers and Release Authorities v3 Co-design Group key messages 30 July 2019

    Welcome

    • Larissa Evans opened the session and welcoming all attendees.
    • The group were provided an update on where the ATO has landed as a result of having to wait for the election and the recent Government announcement around the delay to include electronic Release Authorities.
    • The group were advised that there was an opportunity to explore improvements and have open and robust discussions however the ATO had to manage expectations, specifically if it was outside the project scope, in which case the ATO would have to separately advocate for them.

    Outline and purpose of the day

    An outline of the purpose of the session was provided including:

    • the need to reignite thinking and action around self-managed super fund (SMSF) Rollovers and electronic Release Authorities (RAs)
    • the need to review the current designs for SMSF Rollovers v3.0 and electronic RAs to determine
      • if there was anything else that could be considered (within scope) or a better way to design the services
      • what needs to be included to support electronic RAS
    • how do we position ourselves for the future
    • exploring any further opportunities or improvements that we should advocate for, that would be outside the remit of the project.

    The group were advised of what was in scope – SMSF Rollovers and RAs.

    Review timeline

    A presentation of a proposed timeline for implementation was provided and the group were asked for feedback.

    Review the current design

    • ATO walk through of the current design for both Rollovers v3.0 and electronic RAs. It was agreed by the group that the current designs still meet the requirements.
    • ATO advised the group of changes to support the SMSF sector prior to deployment including:
      • SMSF alerts via SMS and/or email for any changes to SMSF details or addition/removal of a member
      • front door validation – increased checks and monitoring at registration
      • updating electronic service address (ESAs) to align with SMSF annual returns
      • communicating with tax agents to correct bank accounts
      • data cleansing activities conducted prior to March 2021.
    • The group was pleased to see the efforts made by the ATO to mitigate the risk of transfers to incorrect bank accounts, noting it was a major concern. It was suggested funds would be able to provide member information to the ATO to assist them for data-matching purposes. The ATO agreed it would be useful noting that the information provided could not be used to update ATO records but as a matching exercise only.
    • ATO advised that discussions with Australian Prudential Regulation Authority (APRA) would recommence. The group was keen to see progress as well – particularly the update to the APRA guidance.
    • ATO asked the group if they thought the solution would cater for SMSFs who wanted to use electronic Release Authorities as the proposed law change did not appear to exclude them. The group agreed that it would include them.
    • ATO advised the group of changes that were required to the SuperStream Rollovers Message Implementation Guide (MIG) and Schedules to cater for SMSF rollovers and electronic Release Authorities. Further, existing documentation for SuperStream Rollovers MIG V3 would be withdrawn late August.
    • Agreement was reached between the ATO and industry for the following:
      • 1:1 messages for Release Authorities
      • Different service action to be used – same message
      • SMSF (no member ID) - Transferring fund is to use a consistent value (e.g. unknown/SMSF) – outcome to be included in the guidance
      • Irritants from v2.0 to be included in v3.0 – ‘typo’ and guidance notes 47-49
      • ATO to provide the Rollover MIG Change Log
      • Death Benefit indicator – included and unchanged from previous design
      • Paper Rollover benefits statements (RBS) still required for a child death benefit
      • Paper RBS not required for adult death benefit recipient
      • Paper requests for rollovers still expected (and these could trigger a rollover in the standard).

    Other changes that could impact

    The group discussed the potential impact of new payments platform (NPP) and decided that it is still too immature for consumption by industry for SuperStream purposes and that the ATO has not fully agreed on a position. It was noted that NPP Australia are to respond to recommendations tabled in an RBA report. It was agreed that it would remain on our radar.

    Future thinking

    • The ATO suggested it would be extremely beneficial to future proof the Release Authority pattern by having a generic product type code. This was agreed to by industry.
    • ATO raised the possibility of the SMSF Verification Service (SVS) being used for contributions. Industry thought it would be very useful noting that employers would need access to the service. Industry was asked to provide a business case to the ATO outlining the potential benefits and volumes. It was noted that life insurance companies would also need to be considered.

    Other Business

    ATO provided an overview of the current and possible future environment for compassionate release transfers.

    Attendees

    Attendees are listed below.

    Organisation

    Members

    ATO

    Larissa Evans (Chair), Superannuation and Employer Obligations

    ATO

    Belinda Black, Superannuation and Employer Obligations

    ATO

    Bill Korras, Client Account Services

    ATO

    Danny Parker, Superannuation and Employer Obligations

    ATO

    Graham Dawson, Superannuation and Employer Obligations

    ATO

    Greg Cochrane, Enterprise Solutions and Technology

    ATO

    Ian Morgan, Superannuation and Employer Obligations

    ATO

    Katy Nesbitt, Superannuation and Employer Obligations

    ATO

    Leanne Downham, Superannuation and Employer Obligations

    ATO

    Sangitha Sivayogaraj, Enterprise Solutions and Technology

    ATO

    Shane Moore, Superannuation and Employer Obligations

    ATO

    Reno Ceccato, Client Account Services

    AMP

    Kelly Kerr

    ANZ

    David Delaney

    ASP Services

    Spiros Koziaris

    BGL Corporate Solutions

    Anna Tran

    Class Super

    Mike Denniss

    Commonwealth Bank of Australia

    John Kennedy

    IOOF

    Heide Stewart

    Iress

    Andrea Cooper

    Link Group

    Sue Pearce

    Mercer

    Narelle Telfer

    National Australia Bank

    David Kerr

    QValent

    Grant Doherty

    SMSF Association

    Franco Morelli

    Suncorp

    Rakshat Patheja

    Super Choice

    Chris Denney

    SuperConcepts

    Philip La Greca

    Apologies

    Apologies are listed below.

    Organisation

    Members

    Australia Post

    George Aligianis

    National Australia Bank

    Ian Gray

      Last modified: 28 Nov 2019QC 60771