SASG minutes May 2015

Meeting details


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


Wednesday 27 May 2015


09.30 am


3.00 pm


Cathy Cox

Contact and Secretariat:  

Phil McDonald

Contact phone:  

08 8218 9460



Gillian Bellamy


Nour Aouf


Fiona Galbraith

Bravura Solutions

Martin Mikulicin


Kelly Kerr

CBA (Comminsure)

Mark Edwards


Scott James

Financial Synergy

Andrea Cooper


Heide Stewart


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


Amanda Gunn


Atchudan Paheerathan


Jun Tung


Kathy Calman


Louise Hemar


Jayne O’Ryan


Anne Dixon


George Strilakos


Ryan O’Moore


Cathy Cox


Linda Cheesman


Loretta Green


Phil McDonald


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



Tina Cifelli

CBA (Colonial First State)

May Low

CBA (Comminsure)

Suresh Soppa


Gary Powell


Graeme Colley


Ian Roberts

Link Group (Super Partners)

Karen Downes


Lesley Walker


Maria Anislag




Rebecca Scott


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 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

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 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


Allocated to


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


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


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

SASG Secretariat


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

  • MCS Specification V10.1:
  • SuperTICK update.

SASG members


Email details of any urgent 'other business' issues not tabled, that need to be raised before the next scheduled meeting

SASG members


Email 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