• SIRN minutes 9 December 2014

    Attendees

    John Shepherd

    ATO - Assistant Commissioner, Superannuation

    Karen Foat

    ATO - Director, Superannuation

    Ian Colhoun

    ATO - Director, Superannuation

    John George

    ATO - Director, Superannuation

    Tracie Crowden

    ATO - Superannuation

    Jon Hortle

    ATO - Superannuation

    Greg Brunner

    APRA

    Ian Roberts

    Australian Bankers’ Association

    John Kennedy

    CBA Group

    Robina Richards

    MLC

    Sarah O’Brien

    Colonial First State

    David Kerr

    AAS

    Robert Hodge (late apology)

    ASFA

    Hans Van Daatselaar

    Superpartners

    Melissa Birks

    Superpartners

    Andrea Cooper

    Financial Synergy

    Kylie Quinn

    Mercer

    Trevor Govender

    SunSuper

    Julie Steed

    Australian Executor Trustees

    Kelly Kerr

    BT Financial Group

    Tina Gifelli

    AMP

    Gillian Bellamy

    AMP

    Robbie Laurence

    Q Super

    Keith Gambling

    Q Super

    Stephen Hallyburton

    Treasury

    Graham Sammels

    IQ Group

    Martin Mikulich

    Bravura

    Heidi Stewart

    IOOF

    David Haynes

    AIST

    The Superannuation Industry Relationship Network (SIRN) met via teleconference on 9 December 2014 with 30 attendees from Industry and the ATO.

    A summary of the topics discussed is provided below.

    Purpose of the SIRN

    The purpose of the meeting was to outline the updated SBR2 Roadmap, particularly in relation to items that are now confirmed, and also to test opportunities for bringing forward some changes to support industry.

    The meeting also focused on changes the ATO are now proposing for the 2016 year to support improved inbound reporting interactions between funds and the ATO. This gives industry an opportunity to provide feedback on possible benefits, impacts and design questions that the ATO will need to consider.

    Key changes

    Ian Colhoun ran through the changes to the release dates of the Services and Forms and the proposed changes for industry consultation.

    Key changes to release dates are:

    January 2015

    SuperTICK

    Optional update to return corrected TFN’s

    January 2015

    FVS

    Look-Up and Get functionality introduced

    April 2015

    FVS

    Update functionality introduced

    April 2015

    EPF

    SBR2 (cessation of Business Portal channel)

    October 2015

    SuperTICK

    SBR2 (single and bulk) + closed accounts

    October 2015

    EmployerTICK

    SBR2 - return corrected TFN

    October 2015

    SuperMatch2

    SBR2 (ECI in parallel for approx. 6 months)

    October 2015

    Rollovers

    SBR2 – outbound from the ATO

    October 2015

    Contributions

    SBR2 – Outbound from the ATO

    October 2015

    Rollovers

    (unscheduled) SBR2 – Inbound from fund to ATO

    October 2015

    SuperTICK

    (unscheduled) SBR2 - Member Account Service

    Key changes proposed for Reporting to Government interactions are:

    • Replacing the requirement for funds to lodge an Unclaimed Super Money Statement (USMS) with reusing the Rollover Message.
    • Replacing the Section 20C notice with an Initiate Rollover Request (IRR).
    • Removing the requirement for funds to report a Lost Member Statement.
    • Increasing the functionality in a SuperTICK style web service to capture member account changes.
    • Developing a Fund Member Report (FMR) in the standard to report contribution information and balance.
    • Reviewing the current Release Authority transactions between funds and the ATO to see if there is scope for an electronic interaction.

    Issues raised

    Release schedule

    • Would existing processes/services be in place while funds implement to a new service? Yes, in most instances, the ATO will run systems in parallel during transition – the period is likely to be approximately 6 months.
    • If deployment of ATO-sourced contributions and Rollovers in SBR2 was delayed from October 2015 to February 2016, would this be preferable to funds? Yes.
    • If Rollover MIG changes were published as a candidate in February 2015 would this provide enough time for funds to implement in February 2016? Yes, difficult but possible.

    Reporting to Government

    • USM - Is the change to replace the USM statement with a rollover transaction a big impact? Not technically but it is operationally. The ATO can expect to receive feedback from industry in relation to the difficulties in reengineering their internal business processes.
    • S20C notice - Is the concept of the ATO issuing an IRR in place of a Section 20C notice considered a good outcome for funds? Yes, it is good that the ATO is leveraging off what has already been built. However cash flow may be an issue for large funds with less time to prepare – currently there is an 8 week lead time, whereas meeting the Rollover standard is 3 days.
    • Would there be an expectation that funds receive one IRR and look for all accounts or receive multiple IRR’s? The preference is to receive one request that may require multiple responses. This however is unlikely to support straight through processing?
    • Fund Member Report - Benefits of a Member Account Service would be realised if this removed the need to report a Fund Member Report for inactive accounts.
    • The concern by industry is that they had just changed the logic from contribution reporting to cater for all accounts and this change would be changing the logic back.
    • Would an optional service till a cut over date in October 2016 be feasible? Possibly but would need an iterative approach – industry need to see a clearer picture of the future view to enable them to see the steps needed to get there.
    • Account balance – How would account balance be captured and what date would be associated with it? Would this be captured through the service as well as the FMR? This requires further design.
    • Amendment and recoveries – These concepts are being brought into Version 2 of the Rollover and Contribution MIG’s. It is recognised that these may need to be dealt with offline and may not support straight through processing.
    • TA/TC notices/lost accounts – The message concept to return responses to funds including new addresses for lost members was fully supported but again more detail was required for funds to assess the benefits.
    • Release authorities – A single interaction to cover all RA’s in the standard (including the return of the RA statement) was considered a great idea. However it was also noted that although it is a high value change, the volumes are significantly less and may not make a priority change list.
    • Statements of account - Is there an electronic interaction yet? There is no final design at this stage.
    • Whole of government reporting – Is there a push for ebMS to be adopted by other agencies (such as APRA/ASIC) – is the ATO consulting with these agencies? Yes, consultation is occurring although there is no commitment or timeline at this stage.

    Outcome

    Next steps

    • The ATO will provide a summary of the meeting for distribution.
    • The ATO will prepare a more detailed picture of change to allow funds to assess the impacts and capacity to meet the proposed changes within the change period.

    Meeting closed 11.55am

      Last modified: 02 Feb 2015QC 44018