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  • Super Measures Group key messages February 2019

    Welcome

    Assistant Commissioner Jason Lucchese welcomed the group and wished everyone a happy new year.

    Legislation update

    Update on legislation (Sarah Kimmorley)

    Key messages

    Better integrity over deduction for personal contributions (Notice of (Intent)

    Update on infographic and compliance letters (Beverley Van Langenberg/Katrin Hughes)

    Key messages

    • Compliance letters and emails that will target taxpayers who may make a personal super contribution deduction claim. Communication is expected to reach:
      • around 11,000 clients via email or letter, and
      • 19,000 tax agents via newsletter.
       
    • The article in the ATO Tax Professionals newsletter issued on 30 January.
    • A CRT Alert was issued to industry last week.
    • The email will issue on the 12 February.

    Action item update

    Action item

    Provide a breakdown of numbers of the 11,000 clients impacted for Funds with large numbers impacted.

    Due date

    15 Februry 2019

    Responsibility

    Super Consultation

    Update on the USM feedback

    Update on Unclaimed super money (Louie Markovski)

    Key messages

    • On 19 December 2018 an email was issued to the Super Measures Group seeking industry feedback on the proposal to run ATO USM rollovers to Funds on a weekly basis for the month on November 2019 only. To assist with detail design the ATO wanted to know of any concerns/issues, impacts to business processes, including what the ATO could do to assist Super providers to make the weekly aggregation possible.
    • Louie thanked industry for the feedback. Eleven responses were provided by Industry. Some of the concerns and issues raised were:
      • Inability to meet the three day industry standard due to the expected high volume of accounts rolled over.
      • All funds reported some element of manual intervention required to deal with exceptions.
      • Higher volume of exceptions are expected and will require additional resources.
      • Some funds do not have full automation across all platforms/registry systems – small number totally manual.
      • ATO to perform some preliminary analysis on current USM accounts that would be paid to a provider. Knowing number of accounts rolled over would provide an indication of fund impact.
       
    • Treasury projections on the measure suggested $6 billion will be rolled over to an active account for 3 million individuals.
    • ATO is undertaking proactive payment of USM accounts (those that reached eligibility age or amount less than $200) which will reduce account numbers for November 2019 proactive payment.
    • ATO are committed to push out unclaimed money as quickly as possible after receipt.

    SuperStream rollovers V3 (including SMSFs) technical consultation update and next steps

    Update SuperStream rollovers V3 (including SMSFs) – technical consultation update and next steps (Tracie Crowden)

    Key messages

    • The ATO issued documentation for MIGV3 for industry feedback. Consultation closed on the 7 February. We are looking at feedback, technical questions and what needs to be changed to finalise the document by 13 February.
    • Two services – SMSF member tick (we expect use of member tick to be around 70,000/year) and the use of SMSF verification (SVS) around 140,000/year.
    • We will finalise documentation ASAP.
    • We will update the versions (final drafts) so industry can commence their build from them.
    • A communications package will issue to the community by the end March. This will include the changes and explain what they mean.
    • The ATO is working with APRA in relation to a number of topics, including - on-boarding and exploring the legal and financial implications of fraudulent detection and remediation.

    Action item update

    Action item

    Confirm SVS is 140,000/year or double that number as SMSF’s make two calls.

    Due date

    15 Februry 2019

    Responsibility

    Super Consultation

    Answer revised volumes:

    • SMSF Verification service (SVS) – Estimate increased to 300,000 annually (previously 140,000k) evenly spread with no peaks identified.
    • SMSF Member Tick – Estimated 70,000 annually – no change to the service.
     

    Excess contributions determinations – defined benefit members – Impact of incorrectly reporting attributes in the MAAS

    Update excess contributions determinations – defined benefit members - Impact of incorrectly reporting attributes in the MAAS (Blair Lauchlan)

    • Members were reminded about the grandfathering reporting – Funds were reminded to report any issues and ensure grandfathering information is correctly reported.
    • Any grandfathering issues will be resolved within two weeks.
    • We are looking to consult with industry to improve grandfathering instructions.

    Action item update

    Action item

    Follow up with ANZ on a specific issue.

    Due date

    15 Februry 2019

    Responsibility

    Super Consultation

    Early Release of super

    Update early release of super update (Reece Parry)

    Key messages

    • The group were provided a brief overview of the super measures that relate to the early release of super.
    • The six measures that will impact funds include:
    1. Electronic sharing of information with Family Law Courts announced at the end of November and confirmed in MYEFO in December.
    2. Additional ground under compassionate release of superannuation for victims of family/domestic violence.
    3. Treasury’s broader review into compassionate release of super.
    4. Transfer of release of superannuation on Hardship grounds from DHS to the ATO.
    5. Providing perpetrator’s superannuation information to the courts for victims of crime.
    6. Amendments to the First Home Super Saver Scheme.

    Update on pre-deployment workshop scheduled for 22 February

    Update on pre-deployment workshop schedule 22 February (Tim Pulsford)

    Key messages

    • A workshop is being scheduled for the 22 February in Sydney around ATO Online (visibility of super information) and pre-deployment readiness.
    • The Intent of the workshop is to close the loop on the consultation and provide a walk-through of the screens and superannuation information that individuals will see in ATO Online from the end of March/early April.
    • Discussions will also focus around support requirements and opportunities for future ATO Online development.

    Closed

    (Jason Lucchese)

    Key messages

    • On Friday 8 February, a letter was issued to Trustees regarding important compliance reminders for completion of fund on boarding to the ATO Member Account Transaction Service (MATS).
    • A CRT Alert will also issue to industry on the 11 February.
    • As we approach the election and we move into the caretaker period we will communicate with this group about any changes to our consultation and engagement.
    • The next Super Measures Group meeting is scheduled for 4 March 2019.
    • Meeting closed 11am.

    Attendees

    Organisation and name of attendees

    Adam Stone

    Rest Super

    Andrea Cooper

    IRESS

    Belinda Black

    ATO

    Beverley Van Langenbreg

    ATO

    Blair Lauchlan

    ATO

    Catherine Best

    QSuper

    Chris Denney

    SuperChoice

    Dana Fleming

    ATO

    David Delaney

    ANZ

    David Keating

    Australian Super

    David Kerr

    NAB

    Franco Morelli

    SMSFA

    Graham Dawson

    ATO

    Greg Cochrane

    ATO

    Jason Lucchese

    ATO

    Jimmy Sun

    BT Financial

    Anna Tran

    BGL

    John Kennedy

    CBA

    Katrin Hughes

    ATO

    Kelly Kerr

    AMP

    Kenny H’ng

    Unisuper

    Leo Cheung

    ATO

    Ling Quach

    ASIC

    Louie Markovski

    ATO

    Martin Mikulicin

    BT

    Mary Gale

    Link

    Narelle Telfer

    Mercer

    Paul Li

    Class

    Reece Parry

    ATO

    Rob Clarke

    ASP

    Sandra Pilgrim

    First State super

    Sarah Kimmorley

    ATO

    Sarah O’Brien

    GNGB

    Sue Pearce

    Link

    Tim Pulsford

    ATO

    Tracie Crowden

    ATO

    Ty Winmill

    ATO

    Apologies

    Anthony Clarke

    ATO

    Gavin Hayhurst

    ATO

    Hans Van Daatselaar

    ASP

    Heide Stewart

    IOOF

    Ian Morgan

    ATO

    Kylie Smith

    ATO

    Larissa Evans

    ATO

    Mel Birks

    ASIC

      Last modified: 15 Feb 2019QC 57912