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  • Super Measures Group key messages March 2019

    Welcome

    Assistant Commissioner Jason Lucchese welcomed the group.

    • He advised that we would like to bring this group together to work through the detail of the Protecting your super package now that it is law.
    • Jason reminded the group that the Super Measures Group is the co-design group to work through the detail of the implementation.
    • The ATO is also working closely with APRA and ASIC around the Protecting your super package including the sharing of information and data with APRA.

    Legislation update

    Update on legislation (Sarah Kimmorley)

    Key messages

    Treasury Laws Amendment (2018 Measures No. 4) Bill 2019 – the “SG Integrity” measure – has received Royal Assent on the 1 March 2019.

    This Bill includes:

    • Director Penalty Notices and security bonds
    • SG penalties including education direction
    • Single Touch Payroll extension to all businesses
    • Changes to disclosure of information
    • Lost member reporting
    • Ensure that a reversionary transition to retirement income stream (TRIS) will always be allowed to automatically transfer to eligible dependants upon the death of the primary recipient
    • Removing unintended double-taxation for deferred annuity income products in retirement
    • Clarification that item 2 of Schedule1 of MySuper Act commenced on 1 January 2013
    • Expanding the definition of ineligible annuity under 159GP(1) of the ITAA 1936.
    • The Protecting your Super package has made it through both houses of Parliament and is yet to receive royal assent.
    • There was a new bill introduced in the House of Representatives about increasing the maximum number of allowable members in SMSFs, and some small changes to the First Home Super Saver around to the signing of contract dates.
    • The Senate have two more days of sittings, and the House of Representatives seven, prior to an anticipated federal election in May.
    • The Federal Budget to be delivered on 2 April.

    Protecting your super package

    (Louie Markovski)

    Key messages

    • Louie provided an overview of the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 which has received Royal Assent. The start date of this measure is 1 July 2019.
    • The Bill passed with the following amendments:
      • Extended the period of inactivity test from 13 months to 16 months.
      • Changed the insurance so that opt-in for insurance only applies to inactive accounts-no opt-in for under 25’s or accounts less than $6,000.
      • Inserted new provisions which mean an account will not be inactive account if any of the following events have occurred in a 16 month period in respect of that account:
        • Member changed investment options
        • Member makes changes to insurance
        • Member makes or changes binding beneficiary nomination
        • Member provides the Commissioner written notice declaring the member was not a member of an inactive low balance account
        • Super fund was owed an amount in respect for the member.
    • The Commissioner must proactively consolidate the inactive low balance amounts to a fund for a member within 28 days of the Commissioner being satisfied that it is possible to pay that amount.
    • The Treasury Laws Amendment (Putting Members' Interests First) Bill 2019, was introduced to the House of Representatives on 20 February 2019 and proposes to restore the original insurance opt-in requirements for under 25 year olds and members with low balance accounts from 1 October 2019.
    • As at 30 June funds need to identify accounts that meet the new definition of inactive low balance accounts and pay and report this new category to the ATO by 31 October 2019.
    • Louie asked the group to particularise any administrative scenarios that members would like to raise following some of the amendments including:
      • written notice to the Commissioner
      • administering the 16 month period and any changes to investment option, insurance cover or binding beneficiary nomination and the intent of the last items of the amendment in particular how it will be administered and what it will look like for funds.
    • Other maters raised by the group included:
      • letters to the regulator - How do we can make it more streamlined
      • impacts of opening and closing and re-opening of accounts through the MAAS process and interaction with CCAPS
      • consolidation of accounts to one account
      • managing the reporting coming through - bulk reporting versus one for one reporting
      • exceptions and manual intervention required by funds.
    • There are also a number of scenarios that the Super Measures Group will need to work through.
    • A follow up co-design session will be scheduled for 20 March where scenarios will be worked through.
    • The group were asked if there were additional scenarios to supplement what the ATO would bring forward that need to be considered for 20 March to help for shape the agenda.

    SMSFs Rollovers

    (Tracie Crowden)

    Key messages

    • ATO issued a CRT Alert 015/2019 - SuperStream rollover version 3 - build resources.  
    • Technical documentation - There is a requirement for the ATO to use a wide variety of mechanisms to get information and technical documentation published. We have now issued the updated rollover message on the software developers website .
    • An additional page on the software developer’s page has been incorporated just for version 3 technical documentation.
    • Updates to other technical documentation: SMSF verification service and SMSF member tick documents – will be published on the SBR website. The official documentation won’t be published till April. In the meantime we will send out what the changes and detail going into the SMSF member stick SVS are.
    • We will also start getting together with the core design team to talk through on-boarding and scheduling.
    • A questions and answer document is being pulled together.
    • Business implementation Guide (BiG) will be published on 14 March.
    • Next steps – We are finalising all questions and answers from Funds and turning the questions and answers into generic questions and answers to help people progress their build.
    • Next steps – We will then move very quickly onto the on boarding discussion. We will get the core design team together towards the end of March via telepresence.

    Action Item: How long does an SMFS have to make changes (10 days)?

    Answer: Changes to SMSF details occur in real-time once we have received them. Where these details are being updated over the phone or via online services for agents, the new/updated details will be able to be used immediately after it passes our validation requirements. Where details are being updated via the SMSF annual return (SAR) lodgement, the new/updated details can be used once the SAR has been processed and validated.

    Please note – we are implementing changes to allow Tax Agents to update the ESA alias, and for individuals to update either/both of a SMSF’s FIA/ESA alias details when transferring Super to that SMSF via the Transfer Super form in ATO Online.

    Update on ATO Online (visibility of super information) Pre-deployment Readiness workshop

    (Tim Pulsford)

    Key messages

    • A workshop was held on 22 February in Sydney around ATO Online (visibility of super information) and pre-deployment readiness. The Workshop was chaired by Graham Whyte and Hans van Daatselaar. Tim thanked all the workshop participants for their input and feedback.
    • The intent of the workshop is to close the loop and show funds how we have taken their input and feedback along the way and how it is being reflected in deployment.
    • Key points from the workshop include:
      • Deployment is scheduled for the weekend of 18 March.
      • There was a strong desire to get communications products and share them with industry. This resulted in a small working group being set up, which met on Friday 1 March.
      • The ATO will be doing a soft launch. We expect the launch to be mentioned in industry speeches.
    • On Friday 8 March we expect to email out to the group:
      • FAQs
      • scripting
      • updates to web pages
      • a narrative which will be good overview of all the key messages associated with this deployment
      • a copy of all the help aside screens which show what its going to look like at deployment.
    • We are also preparing for an industry wide presentation on what the screen changes are going to look like. This will be scheduled for the week of 19 March via phone hook-up.

    Close (Jason Lucchese)

    Key messages

    • The next Super Measures Group meeting is scheduled for 1 April 2019 from
      10am -11am.
    • Meeting closed at 11am.

    Attendees

    Organisation and name of attendees

    Andrew Stewart

    QSuper

    Anna Tran

    BGL

    Belinda Black

    ATO

    Blair Lauchlan

    ATO

    David Delaney

    ANZ

    David Keating

    Australian Super

    Debra Goldfinch

    ATO

    Dianna Orbell

    Sunsuper

    Franco Morelli

    SMSF Association

    Graham Whyte

    ATO

    Heide Stewart

    IOOF

    Ian Morgan

    ATO

    Jason Lucchese

    ATO

    Jimmy Sun

    BT

    John Kennedy

    CBA

    Kenny H’ng

    UniSuper

    Larissa Evans

    ATO

    Louie Markovski

    ATO

    Mary Gale

    Link

    Mel Birks

    ASIC

    Neill Stromborg

    ATO

    Narelle Telfer

    Mercer

    Pamela Cooke

    ATO

    Reece Parry

    ATO

    Richard Webb

    AIST

    Rob Clarke

    ASP

    Sacha Vidler

    APRA

    Sandra Pilgrim

    First State Super

    Sarah Kimmorley

    ATO

    Sarah O’Brien

    GNGB

    Sue Pearce

    Link

    Tim Pulsford

    ATO

    Tracie Crowden

    ATO

    Apologies

    Anthony Clarke

    ATO

    Catherine Best

    QSuper

    Dana Fleming

    ATO

    David Hayes

    AIST

    Erica Hobson

    Mercer

    Gavin Hayhurst

    ATO

    Kelly Kerr

    AMP

    Martin Mikulicin

    BT

    Next meeting: Monday 1 April 10am - 11am.

      Last modified: 13 Mar 2019QC 58212