• SASG minutes May 2015

    Meeting details

    Venue:

    Rooms 719 & 720, Level 12, ATO Latitude East, 52 Goulburn Street, Sydney NSW 2000

    Date:  

    Wednesday 27 May 2015

    Start:  

    09.30 am

    Finish:  

    3.00 pm

    Chair:  

    Cathy Cox

    Contact and Secretariat:  

    Phil McDonald

    Contact phone:  

    08 8218 9460

    Attendees

    AMP

    Gillian Bellamy

    AMP

    Nour Aouf

    ASFA

    Fiona Galbraith

    Bravura Solutions

    Martin Mikulicin

    BT

    Kelly Kerr

    CBA (Comminsure)

    Mark Edwards

    Comsuper

    Scott James

    Financial Synergy

    Andrea Cooper

    IOOF

    Heide Stewart

    IOOF

    Julie Orr

    Link Group (AAS)

    Alan Harvey

    Link Group (AAS)

    Sue Pearce

    Link Group (GESB)

    Sharan Panton

    Link Group (Super Partners)

    Eoin Burke

    Link Group (Syncsoft)

    Mary Gale

    Mercer

    Amanda Gunn

    NAB

    Atchudan Paheerathan

    Onepath

    Jun Tung

    Perpetual

    Kathy Calman

    Pillar

    Louise Hemar

    QSuper

    Jayne O’Ryan

    Sunsuper

    Anne Dixon

    Unisuper

    George Strilakos

    Zurich

    Ryan O’Moore

    ATO CAS Super

    Cathy Cox

    ATO CAS Super

    Linda Cheesman

    ATO CAS Super

    Loretta Green

    ATO CAS Super

    Phil McDonald

    ATO CAS Super

    Shaun Ferabend

    ATO, Integrated Tax Design

    Phil Klitscher

    ATO, Integrated Tax Design

    Suzanne Gundry

    ATO Super

    Catherine Barrett

    ATO Super

    John Shepherd

    ATO Super

    Louise Elliott

    ATO Super

    Nicole Dykstra

    Apologies

    AMP

    Tina Cifelli

    CBA (Colonial First State)

    May Low

    CBA (Comminsure)

    Suresh Soppa

    SuperSA

    Gary Powell

    SPAA

    Graeme Colley

    NAB

    Ian Roberts

    Link Group (Super Partners)

    Karen Downes

    GESB

    Lesley Walker

    Zurich

    Maria Anislag

     

     

    Perpetual

    Rebecca Scott

    ATO CAS Super

    Linda Cheesman

    ATO Super

    John Shepherd

    Next Meeting

    Wednesday 26 August 2015

    Please note: SASG agendas, minutes and related papers are not binding on the ATO or any of the other bodies referred to in these papers. While every effort is made to accurately record views expressed, the wording necessarily represents a summary of statements of general position only, and care should be taken in interpreting those statements. These papers reflect the position at the date of release (unless otherwise noted) and readers should note that the position on any issue may subsequently change.

    Agenda Items

    1 ATO Reinvention workshop

    John Shepherd outlined the purpose of the workshop, by:

    • providing an overview of the ATO Reinvention Program, key changes the ATO is focussing on to improve and transform the tax and superannuation systems, and outcomes of activities undertaken with the Superannuation Industry Relationship Network (SIRN)
    • emphasising our intention to work together as one to provide an improved service, being the ‘right services at the right time’.

    Phil Klitscher led the group through workshop activities which focussed on:

    • understanding the reasons why APRA funds contact/interact with the ATO
    • obtaining feedback from SASG members on what the future APRA fund client service model might look like.

    At the conclusion of the workshop, Cathy Cox:

    • reflected on feedback from attendees on our constructive discussions and thanked attendees for their enthusiastic and valued contribution
    • outlined that the issues raised and views obtained would be reviewed and assessed out of session. Some can be implemented reasonably quickly, while others will be fed into the Reinvention program process with interactions with other like forums
    • advised updates will be provided at future meetings or as required.

    2 Minutes of Previous meeting

    Minutes of meeting held Wednesday 4 March 2015 endorsed without amendment.

    All action items resolved.

    3 Budget 2015

    Industry discussion focused on the following.

    3.1 Cutting Red Tape - lost and unclaimed superannuation package of measure

    Changes to the 'uncontactable' definition:

    • recognises industry’s move to more contemporary methods of interacting with their members
    • provides broader opportunities for positive contact tests to be applied.

    However, concern was raised that the intended change might increase events leading to more ‘uncontactable' events. It was agreed consultation and clear communication was required about how this definition change should practically impact fund’s interpretation of 'uncontactable'.

    3.2 Support for Eligible Rollover Funds (ERF)

    Support for ERF will involve:

    • proactively consolidating lost superannuation accounts. Consideration will include how the ATO intends to provide an ERF with member data, whether ERFs will be mandated to transfer to active accounts with other funds
    • Treasury working with the ATO and industry stakeholders to implement these changes, with an anticipated commencement date of 1 July 2015.

    3.3 Release of Superannuation for terminal medical condition - relaxing criteria

    The concerns raised highlighted issues for ATO and industry stakeholders regarding the change to release conditions and the potential of eligible members closing accounts that may have provided life insurance cover.

    4 Risk Differentiation Framework Update

    Louise Elliott provided an update on a number of key issues relating to the release of Risk Differentiation Framework (RDF) diagnostic reports to trustees, being:

    • the release of the reports has been delayed until late June 2015 due to more extensive quality assurance of the data reported; and the inclusion of more complete lost member register account data, rather than the fund’s most recent lost member statement
    • reports will be directed to fund trustees in the first instance based on strong feedback received in recent consultation with trustees and administrators, and for the trustee to either engage with their fund administrator; or authorise the ATO to engage directly with the fund administrator. The ATO undertook to provide notification to stakeholders of the release of reports
    • delivery is expected to be facilitated through the secure Data Transfer Facility (DTF). This may necessitate administrators obtaining permission from the fund trustee to authorise the ATO to deliver the report through administrators existing DTF
    • a webinar will be organised from mid July 2015 to support industry in interpreting the report.

    5 Product Update

    Briefing notes to support these updates were circulated prior to the meeting.

    Louise Elliott provided key point updates on the following Products and Services.

    5.1 Excess Contributions Tax

    5.1.1 Fairer Treatment of Excess Concessional Contributions (FTECC)

    The volume of FTECC Release Authorities APRA regulated funds should receive before July 2015 has been significantly reduced to 5,000. 15,000 will be released during July / August 2015.

    5.1.2 Refund of Excess Non-Concessional Contributions (RENCC)

    The 2013/14 financial year RENCC determinations have been issued to individuals.

    Approximately 1,500 Release Authorities are expected to issue to APRA Regulated funds from July 2015.

    Key issues discussed included:

    • the ATO expected Regulations (expanding the conditions of release to allow super funds to comply with a release authority) to be passed by the end of May 2015
    • the RENCC Briefing Note provides guidance on where the nominated account does not have sufficient funds to finalise a member’s Release Authority
    • an industry view recommended funds should update their Product Disclosure Statements to reflect actions funds may take to resolve insufficient funds to fulfill a release authority request.

    In response to industry feedback, the ATO undertook to review multiple ATO addresses for funds to return the various release authorities.

    5.2 Division 293 (Div 293)

    Key issues discussed included:

    • the ATO has not issued any Div 293 assessments since April 2015; further improvements to the assessment correspondence are being progressed
    • 2013/14 financial year Assessments are expected to be issued by the end of the financial year (excluding Deferred Defined Benefit Assessments which will be issued in the new financial year)
    • the ATO drew members’ attention to the Briefing Note - Div 293 Section 4. noting the importance of funds working out their process and timing and communicate this to their Div 293 tax members, in actioning end benefit release authorities after the member has advised they wish to take their benefits.

    5.3 Other key issues

    Members were asked to review the Briefing notes and provide feedback by email to SASGSecretariat@ato.gov.au regarding:

    • MCS Specifications V10.1 - any perceived issues for the 2015 MCS reporting for defined benefit contributions amounts, given their requirement to obtain actuarial advice
    • SuperTICK update - what users of the service consider to be the benefit or advantage of not including address information when it is available, notifying new members via SuperTICK and what might be contributing to the number of corrected tax file number for new members.

    5.4 ISAT Protocol document

    The ISAT Protocol document is expected to be published late May / early June 2015, with a webinar being organised for June 2015.

    Members of the forum were thanked for their contribution. Work continues on the list of issues raised during our consultation activities to determine how they can be resolved.

    5.5 Unclaimed Superannuation Money (USM)

    Shaun Ferabend (Director, Super Product Management, Client Account Services) provided the following update.

    5.5.1 Section 20C Notification - period ended 31 December 2014, statement due date 30 April 2015

    The ATO acknowledged the delayed release, shared some of the difficulties experienced in the Section 20C notification being issued electronically and highlighted the acquired learnings from the process (the first successful release of these notices electronically since implementing USM processing within ICP in January 2014).

    Funds were advised:

    • file sizes have been significantly reduced through improvements with ATO and Department of Immigration and Border Protection (DIBP) data matching processes
    • planning has already commenced for the release of the next notification (early August 2015).  

    5.5.2 Claim for Payment delays

    Funds were advised the ATO is continuing to work through a backlog (approximately 30,000) of on-line services generated ATO-Held USM rollovers (direct payments to individuals and rollover to funds) that have not been successfully processed within ATO systems. The ATO expects these backlogs will be issued across several rollover processes.

    5.5.3 ATO-Held USM Rollovers - Rollover Benefit Statements

    The ATO expects to continue providing funds RBS data by excel workbooks through the Data Transfer Facility (DTF) until implementation of ATO rollovers to Standard (October 2016). Members were encouraged to consider how to automate USM rollover processing from the excel data.

    Funds not making use of the Data Transfer Facility to receive the RBS data, were encouraged to consider opportunities to streamline their RBS processing. Those interested in moving to accepting excel data through the DTF should email details to SuperCRT@ato.gov.au.

    Members were also briefed on a recent irritant regarding missing component information from the RBS data; remediation work is underway and will be provided shortly.

    6 Reuniting Super update

    Shaun Ferabend briefed members on the following strategies.

    6.1 Decommissioning finding Super Tools

    Members were advised the ATO is moving forward with plans to decommission ’lost super' tools after December 2015 and SuperMatch after December 2016.

    Industry feedback provided during March 2015 was acknowledged, however these tools will no longer be supported beyond the advised dates as our online services provide are superior in the complete picture being provided, whereas the older tools don’t provide the complete picture (including all monies held by the ATO), and represent a significant risk to our reuniting strategies.

    6.2 Campaigns

    6.2.1 Email and SMS campaigns:

    Individuals with multiple superannuation accounts - Since December 2014, 250,000 candidates targeted. Approximately ten percent have accessed our online services through myGov, with only four percent submitting an electronic portability forms (EPF) for industry to action.

    High value campaigns - Evidence from other smaller scale campaigns but with more tailored information (for example: higher value accounts) have generated stronger response rates (up to 17 percent).

    6.2.2 Tax Professionals.

    Work with a number of tax professionals has commenced with the objective being for them to utilise their interactions with individuals (90,000 with multiple accounts) during their Tax Time 2015 period to provide limited information to those individuals about their superannuation interests, to promote the use of MyGov and EPF for consolidation; or provide super fund contact details. 

    It is expected this may increase flows of electronic portability forms (EPFs) or telephony workflows to superannuation funds call centers.

    The ATO provided assurances that the scope of the campaign is limited - to notifying the individuals of superannuation accounts issues to consider including fees or insurance cover provided, etc. and the avenues available for individuals to consider consolidation, but not to provide advice or influence where the individual should consolidate.

    6.2.3 Other key information shared

    • SuperMatch 2 - Conformance suite documentation (for example: message implementation guides, etc.) is expected to be released from mid July 2015 for SuperMatch 2 implementation from November 2015. The ATO will be seeking feedback from users once SuperMatch 2 is implemented
    • MyGov - Is a cross agency initiative, limiting the scope to change registration requirements (including the unique email address requirement)
    • 3.4 million Individuals are registered for MyGov, with our target being six million
    • Funds can expect an increased flow of EPF during Tax Time 2015 (July – October 2015)
    • EPF volumes year to date - 385,000 accounts valued at $1.6 billion (150%) increase compared with 2014/15 year
    • Legislation to increase the lost member small account threshold is expected to be debated in the winter sitting.

    7 Close

    In closing Cathy Cox, thanked members for their active contribution to a very successful event , encouraging all to consider bringing forward (by email to SASGSecretariat@ato.gov.au) significant issues / irritants that can be effectively considered in a SASG workshop environment at future face to face meetings or specific ATO teleconferences.

    The next meeting is scheduled for Wednesday 18 November 2015.

    Action items

    Action item reference

    Issue

    Allocated to

    27052015/01

    Undertake an out of session teleconference with interested stakeholders to discuss ATO matching processes and develop strategies to mitigate or resolve identified exceptions

    Linda Cheesman

    27052015/02

    The ATO to undertake a review of associated ATO Call Centre scripting of FTECC, and Div 293 content, along with scripting for 'intention to claim personal deduction for superannuation contributions', with the view to consulting with industry to assess opportunities to improve 'individual’s' experience with interactions with the ATO and Super Funds regarding unexpected liabilities, including the development of a Questions and Answers document.

    Louise Elliott

    27052015/03

    Review and advise on multiple ATO addresses for return of Release Authorities

    SASG Secretariat

    27052015/04

    Review and provide feedback on focussing questions on Briefing Notes distributed:

    • MCS Specification V10.1:
    • SuperTICK update.
     

    SASG members

    27052015/05

    Email SASGSecretariat@ato.gov.au details of any urgent 'other business' issues not tabled, that need to be raised before the next scheduled meeting

    SASG members

    27052015/06

    Email SASGSecretariat@ato.gov.au details of specific issues of note (for example irritants, solutions etc.) members discussed during the Reinvention workshop that may not have been reflected in the outcomes captured on the day

    SASG members

      Last modified: 09 Oct 2015QC 47057