Superannuation Administration Group key messages 26 August 2020

Welcome and opening remarks

Larissa Evans opened the meeting with the acknowledgment to country, welcomed those in attendance and introduced the new Superannuation Administration Group (SAG) members.

Larissa thanked members for their commitment and contribution through the SAG during the past few months in response to delivering the early release of super measure as well as the work done around SuperMatch.

Early release of super - extension to 31 December 2020

Reece Parry provided an update for the COVID-19 early release of super (ERS) end date extension to 31 December 2020.

• The Government has announced its intention to extend the end date for the COVID-19 ERS program from 24 September 2020 to 31 December 2020. The required Regulation changes are expected by mid-September 2020.
• The ATO has updated content on ato.gov.au confirming the Government’s intention to extend the program end date and has also commenced the design and build of system and process updates to accommodate the change of end date.
• Work is underway to put in place appropriate steps to support the ERS program during the ATO’s normal end of year Christmas shutdown period. Industry members raised some issues regarding the impact of the shutdown period, particularly from a resourcing perspective and the timing of the files being issued as well as the need to ensure extreme hardship cases are considered.
• The ATO is working through the timeframes for when funds will receive the last data files prior to the shutdown period, both the 18th and the 23rd of December are being considered as well as the timeframes to manage any remediation work required during this period. Normal process will resume on 4 January.
• A communication package will be prepared, including clear messaging on what the end of year arrangements and processing timeframes will be as well as strengthening web content to support the extension once the regulation changes are announced.
• It was suggested to include appropriate messaging on the individual application form to assist members understand the processing timeframes and provide assurance that their application is in progress. It was noted that the MyGov messaging is unable to be modified.
• The ATO will consider the feedback in finalising the arrangements for the program extension and an update will be provided to members at the October SAG meeting.

SMSF Rollovers V3 update

Ian Morgan provided an update on SuperStream rollovers version 3, including SMSFs.

• A letter issued on 6 August 2020 to APRA regulated fund trustees, advising of the deferral, and extension to the transition window. ATO deployment has been deferred from December 2020 to March 2021, following which the transition window for funds commences March 2021 to September 2021.
• The letter included an implementation and testing readiness template for APRA fund trustees to provide initial readiness estimates, with responses due 28 August 2020 and details published shortly after.
• Updated versions of the Rollovers V3 User Guide, SMSF Verification Service (SVS) and SMSFmemberTick business implementation guides are expected to be published by the end of September 2020.
• The industry co-design group has met a couple of times in the last few months with the next meeting in September to focus on security and controls in the SMSF and rollovers processes.
• A specialised ‘onboarding group’ has been established to guide industry through the transition period with meetings occurring throughout August to focus on transition issues and artefacts.

Reuniting more super

Larissa Evans provided an update on Reuniting More Super.

• The Government released its Economic and Fiscal update July 2020 on Thursday 23 July which referenced the Reuniting More Super changes.
• The changes require Eligible Rollover Funds (ERF) to transfer accounts to the ATO and the introduction of the trustee discretion to pay amounts to the ATO that have not already met a USM definition.
• There are also proposed changes to the dates around the ERF transfers.
• It was noted the changes to the trustee discretion has been put forward as government policy.
• The changes are subject to the Government’s legislative agenda but the ATO will commence engaging with industry again on this change.
• Changes to accommodate reporting trustee voluntary payments via a new code in the Rollover MIG version 3 is in scope, however depending on the commencement timeframe, an interim approach to the reporting or those payments may be required.

New payment platform (NPP)

Larissa Evans provided an update on the NPP.

• The ATO has recently started to re-engage with New Payment Platforms Australia (NPPA) on the use of the new payment's platform within the SuperStream framework.
• There is a guidance note in place that states the NPP is not an approved payment method however, it is expected that the impact on SuperStream payment standard will increase and industry are encouraged to start thinking about the impacts going forward.
• Members discussed a number of considerations including the need to understand the NPPAs role and the structure arrangements noting the NPPA govern the financial institutions around the use of NPP.
• The current thinking around NPP is still at a high level and there is a need to get into the detail for transactions and specific scenarios as well as how the guidance NPPA has developed will integrate into the SuperStream framework.
• The guidance note doesn’t prescribe the specific agreement between the NPPA and entities, however current interactions focus more around the message structure not the payment.
• NPPA have established a working group to progress to the next level of detail. SAG members have an opportunity to engage with NPPA in the working group directly if they choose, contact info@nppa.com.au
• The Superannuation Data Standards Technical Group is engaged on NPP and being kept updated. We will similarly keep the Superannuation Administration Group updated.

SuperMatch v9 Campaign

Larissa Evans provided an update regarding recent changes to SuperMatch terms and conditions of use and user guide and the process for turning SuperMatch back on for super funds and their providers.

• On31 July 2020 version 9 of the terms and conditions of use and user guide were published on ato.gov.au and a letter issued to trustees to advise them the new versions are now in effect.
• An application form has been provided to trustees for completion to demonstrate how they intend to use the service and ability to comply to the terms of conditions of use and user guide. Only a small number of applications have been received to date.
• A webinar was held by the ATO on 5 August 2020 to run through the key changes between v8 and v9 of the terms and conditions of use and user guide and provide further information on the new customer verification process. A further webinar is being considered to provide further information on the application process depending on demand.
• Access to SuperMatch will be provided to approved trustees from 31 August 2020 or as required as applications are considered and approved.

Unclaimed Super Money

Alastair Ramsay provided an update on the upcoming Unclaimed Super Money (USM) reporting and payment requirements.

• Funds were reminded for those who deferred the reporting and payment of their 31 December 2019 USM are due to be reported and paid by 31 October 2020.
• To ensure accounts are displayed correctly on ATO Online, funds need to ensure account closures are reported immediately once unclaimed money reporting is completed.
• Industry members queried the large volume of s20C notices received. The ATO advised this was due to system changes which resulted in an increase in the volumes of accounts not previously included in the s20C notices. The ATO expects this to reduce to normal numbers.
• Funds can apply for a deferral as per normal USM deferral process to assist with managing the large volumes, however the request will need to take into consideration the circumstances outside of a normal USM process. Funds can get in touch with the ATO client relationship managers who manage the deferral requests and the ATO will work with funds on a date when they can complete the s20C notices.
• While it was acknowledged that the high volumes were not normal practice on this occasion, Industry suggested that the ATO engage with funds early on for future instances of similar nature to allow for appropriate planning and resourcing arrangements to be put in place to manage any large volumes. A client relationship team (CRT) alert would also be beneficial.
• Industry members queried the ATO’s approach for proactive payments scheduling. Proactive consolidation is currently a weekly process. The ATO will work with funds on the timing depending on estimated volumes.

Fund engagement updates

Alastair Ramsay and Bill Korras provided an update on fund engagement initiatives.

• The ATO will be releasing a number of news articles covering SuperMatch and the USM reporting and payment requirements as well as an article on common errors coming through the annual MATS reporting.
• An issue with ato.gov.au has resulted in the link to the USM protocol reverting to an old version. This is currently being investigated and will be resolved as soon as possible.
• The ATO is moving toward the final Beta for the online services platform which will replace the current business portal functionality. The ATO will be seeking nominations from industry representatives to be part of the private Beta testing prior to going live.
• There is a project underway to understand how the transition from the portal to the online services platform will work specifically.
• It was noted the new online services for funds platform will replace the current CRT mailbox protocols and procedures. The ATO will keep funds informed of this progress as more information becomes available.

Other business and close

The Superannuation Changes Roadmap was provided to members for noting.

No other business was noted. Larissa thanked members for their attendance and contributions.

Attendees