Show download pdf controls
  • Super Measures Group (SMG) key messages September 2018

    Welcome

    Jason Lucchese welcomed the group. A new agenda items was introduced to provide the group with some insights on what we are seeing around personal superannuation deductions.

    Update on personal superannuation deductions

    Anthony Clarke provided some insights on what we have seen around personal superannuation deductions through-out tax time 2018.

    • With the changes to eligibility rules, as expected, we have seen an increase in the number of people claiming the deduction for personal super contributions. The numbers of claims have increased by 250% on the same time as last year. The error rate is 3%, which is the same as last year.
    • We are seeing people incorrectly claiming deductions for salary sacrifice amounts and claiming deductions for their employer paid super contributions.
    • Despite not having received a Notice of Intent (NOI) acknowledgement from their super fund, people mistakenly state they have received it by ticking Yes (label D12) in their tax return.
    • To claim a deduction, individuals need to have lodged a NOI and to have received an acknowledgment from their super fund at the time they lodge their tax return.
    • To help educate clients we are updating our web content to make it clearer on what contributions can and can’t be claimed as a deduction. We are also updating our call centre scripting and developing an infographic on personal superannuation deductions.
    • In November we are looking at a mail out to clients that haven’t claimed a deduction and made personal contributions and also reminding them of their NOI obligations.

    Action item

    Updated documentation and infographic to be made available to Super Measures Group - this is an opportunity for funds to leverage off the information in their communication campaigns.

    Action item

    Share the letter template with the Super Measures Group prior to November mail out.

    Protecting your super package

    Discussion covered reporting and paying of inactive low balance accounts and the outcomes captured from the Sydney workshop held on 7 August.

    Louie Markovski presented a proposed enduring solution which could be used for Rollover MIG versions 2 and 3. By using the ‘Insoluble lost member accounts’ USM reason code (P) to also report inactive low balance accounts. The ATO could then use the information reported by funds when they update the lost status indicator on the Member Account Attribute Service (MAAS) to identify how many insoluble lost accounts were reported using Code P. This solution would mean that funds only have to make one change to their registry system.

    Key messages

    • The Super Measures Group (SMG) agreed to report and pay ‘inactive low balance’ with ‘lost insoluble’ accounts in the Rollover MIG v.2 using code P for both categories of USM. However, the preferred option is to have this as an interim solution for the first USM scheduled statement day 31 October 2019 only.
    • The SMG advised that the best option is to add in a new code specifically for inactive low balance accounts in Rollover MIG version 3 as an enduring solution for all future USM scheduled statement days. Funds are already undertaking a significant build to cater for Rollover MIG version 3, therefore building a new reason code and mapping it in their systems is not a complex change. They would prefer to have these separated. The ATO was in agreement.
    • The ATO is obliged to report on the number of inactive low-balance accounts it receives. There was general consensus the ATO could still report on Inactive low-balance account in the interim (before the implementation of Rollover MIG version 3) through the following formula: total number of USM accounts reported and paid using reason code P minus the total number of accounts with lost status indicator on MAAS. This formula would separate and illustrate the number of inactive low-balance accounts. The SMG did highlight that the ATO needed to be clear about the reporting of closed accounts with lost indicator in MAAS if it wanted to correctly capture numbers.

    Action item

    ATO to update the proposed solution and develop communications for the use of MAAS reporting as part of for the interim plan and bring it back to the SMG for feedback before going out more broadly to industry.

    SMSF Rollovers and other potential candidates

    Tracie Crowden provided an update on SMSF Validation Service (SVS)

    • There will be a design workshop with industry in Sydney on the 26 September, which will be a subset of Super Measures Group (SMG). This will be a small design working group which will focus on confirming the high level design for the SMSF rollover message. Recommendations from the workshop will feed back into SMG for consideration.
    • The scope for version 3 for industry to include release authorities, death benefits, Commissioner Commutation authorities are included in priority 1. This is going through a prioritisation process within the ATO and the outcome will be communicated back to the group.
    • There was a discussion around what is the ATO’s longer term commitment and views beyond version 3. Any items not included in version 3, we will need to be looked as part of the longer term vision including version 4.

    Close

    Jason Lucchese concluded the meeting with the following messages

    • Meeting dates for the monthly Super Measures Group have been schedule until end of the year.
    • The group was reminded that SMG Consultation group is a core co-design group and owns the design.
    • We are currently finalising details for the broader consultation group. This will be open to anyone in industry that is interested in hearing updates about the superannuation measures. Any questions or issues raised in the forum will be fed back into the respective core group. Details for the broader consultation group will be issued next week.
    • The next Super Measures Group is scheduled for 10 October.

    Attendees

    Organisation and name of attendees

    Organisation Members

    Anthony Clarke, ATO

    Beverley Van Langenberg, ATO

    Chris Denney, SuperChoice

    David Delaney, ANZ

    David Keating, Australian Super

    Erica Hobson, Mercer

    Hans van Daatselaar, ASP

    Heide Stewart, IOOF

    Ian Gray, NAB

    Jason Lucchese, ATO

    Joanne Ng, BGL

    John Kennedy, CBA

    Jimmy Sun, BT

    Kelly Kerr, AMP

    Kylie Smith, ATO

    Louie Markovski, ATO

    Narelle Telfer, Mercer

    Paul Li, Class

    Peter Burgess, SuperConcepts

    Sandra Pilgrim, First State Super

    Spiros Koziaris, ASP

    Sue Pearce, Link

    Tracie Crowden, ATO

    Uma Senthilkumaran, ATO

    Apologies

    Belinda Black, ATO

    Martin Mikulicin, BT

    Meg Heffron, Heffron

    Sarah O’Brien, GNGB

      Last modified: 10 Oct 2018QC 56983