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  • Superannuation Administration Group key messages 9 August 2019

    Welcome and opening remarks

    Larissa Evans noted this was the first meeting of the Superannuation Administration Group (SAG) and introduced Sue Pearce as Co-chair.

    Larissa Evans provided some background on the recent review of ATO committees and consultation arrangements and noted the group Terms of Reference.

    Highlighted from the Terms of Reference was the expectation of members to engage in constructive discussion that is in good faith and is transparent and that is of an industry view rather than any one organisation or any commercial views.

    Membership numbers will be kept to a manageable number and it is expected that every member will contribute actively to the group. If any member fails to meet expectations or has a prolonged period of absence, it is the Chair and the Co-chair’s discretion to remove members from the group.

    Meetings will be held every two months for two hours in duration, utilising ATO telepresence or teleconference facilities.

    The secretariat function for this group will be provided by the Fund Services and Engagement team.

    Protecting Your Super

    Louie Markovski provided members with an update on Protecting Your Super (PYS). Key messages included:

    • The ATO wrote to trustees on 24 June 2019 seeking guidance around the numbers and dates for unclaimed superannuation money (USM) lodgements (including inactive low-balance accounts).
    • 235 trustees were contacted with a 99% response rate. From that it is projected that around 3 million accounts will satisfy the criteria.
    • The majority of trustees will be lodging earlier than anticipated. By the end of September 2019 we expect 400,000 lodgements and by the first week of October 2019 we expect 1 million lodgments.
    • There was originally a preference for pro-active consolidation to occur in November 2019 because USM lodgments and Member Account Transaction Services (MATS) annual balances are expected by 31 October 2019 - these two pieces of key information are required to determine eligibility for proactive consolidation to an active account.
    • However, looking at the schedule of incoming USM and MATS annual balance volumes, we expect that we will be in a position to commence proactive consolidations earlier than the November forecasted timeframe.

    Louie Markovski advised that when a pro-active consolidation or direct payment occurs, notifications will be sent to the individual advising of our reunification with ATO held super. Notification to the individual will be issued 35 days post transfer to an active account. This will allow sufficient time for the processing of payment variation advices (PVA’s) and limit reverse workflow.

    In terms of the schedule, the ATO are socialising the numbers with industry so they can be prepared. However, we first need to agree internally in the ATO on timeframes and volumes.

    Members asked if there was any intelligence on the number of declarations received by the Commissioner with respect to opt-out for inactive low-balance account treatment. Louie confirmed to date the ATO had received less than ten declarations and that we would keep funds informed of the numbers being received.

    Rollovers V3 – SMSF Rollovers and Release Authorities

    Ian Morgan provided a progress update to members on the Rollovers V3 strategy. Key messages included:

    • Industry consultation has re-commenced on this measure to re-evaluate the SMSF rollover design in light of the deferral and to also incorporate the Release Authorities.
    • A draft timeline has been developed with the compliance date set to 31 March 2021.
    • The proposed timeline is currently being tested internally by the ATO and externally by fund members who were part of the consultation session.
    • It is expected that draft technical documentation will be released in October 2019 with the final specifications in November 2019. A change log highlighting changes to the specifications will be made available to the group.
    • Action item updates from the consultation session will be available late-August/early-September 2019.
    • Members were advised to provide feedback regarding the timeline to the FSE Governance mailbox.

    Action item

    09.08.2019-1

    Due date

    September 2019

    Responsibility

    Secretariat, ATO

    Description

    The ATO to provide members with a copy of the SMSF Rollover V3 change log once available.

    Unclaimed Super Money - protocol updates

    Tracy Holloway provided members an update to the Unclaimed Super Money (USM) reporting protocol chapter. Key messages included:

    • The updated USM protocol will be available on Let's Talk by 16 August 2019.
    • The protocol includes unclaimed money, various categories of lost member accounts, super accounts of former temporary residents and the inclusions of the changes from the Protecting Your Super (PYS) package and the new inactive low balance accounts (ILBA) category.
    • Changes to the protocol include
      • restructuring the layout to provide easier navigation throughout the protocol
      • new content for inactive low-balance accounts
      • additional information to assist funds in meeting their reporting obligations.
       
    • It was noted that the updated protocol now addresses some scenarios we have seen which do not result in a successful lodgement. The group discussed some of these scenarios. Members requested further clarification on how to rectify an error where there is a mismatch between the amount reported and the amount paid, or where funds have lodged for additional members in error.

    Members were reminded of the upcoming unclaimed money, lost members and inactive low-balance account reporting obligations webinar occurring on Wednesday 14 August 2019. During the webinar various scenarios will be discussed with an opportunity for questions and feedback.

    Action item

    09.08.2019-2

    Due date

    September 2019

    Responsibility

    Tracy Holloway, ATO

    Description

    The ATO to provide clarification on how to rectify an error where there is a mismatch between the amount of unclaimed super money reported and the amount paid, or where funds have lodged for additional members in error.

    Secretariat note: Action item 09.08.2019.2 response – To clarify the discussion on the cancellation process, the adjustment template is also utilised to cancel a lodgment whether a refund is required or not. Information on making adjustments can be found at Adjusting unclaimed super. We have also updated our USM protocol with some new examples for adjustments. The USM protocol is currently on Let’s Talk for feedback, if these examples do not meet your needs please provide feedback through the protocol consultation process.

    MAAS/MATS snapshot for 2018–19

    Larissa Evans provided an overview of Member Account Attribute Service (MAAS) and Member Account Transaction Service (MATS) as at 30 June 2019. Key messages included:

    • A snapshot report is being developed to provide a high level view of the MAAS/MATS experience in 2018–19.
    • The context of the report is not for compliance purposes – rather a high level summary of the transactional scale and volume of the MAAS/MATS reporting.
    • For MAAS, the report will include the number of funds reporting in MAAS, the total number of MAAS accounts as at 30 June 2019, the account phase and key attributes and timeliness of reporting. It was noted that around 32 million accounts were reported, of which 27.3 million are open and 4.9 million are closed.
    • For MATS, the report will include the number of funds that are reporting through MATS and transactions and event volumes of employer contributions, non-employer contributions, retirement phase events and notice of intent. It was noted that 183 million MATS were lodged up to 30 June 2019.
    • It was noted that there are some nuances with reporting – for example what will be reported for timeliness does not include new accounts opened.

    Members noted their interested in reviewing the draft MAAS/MATS snapshot when it becomes available.

    Larissa Evans also noted the review of the Fund Diagnostic Report has been moved into our Design and Implementation team. We will spend some time reflecting internally about what is going to be achievable and helpful in terms of reporting to funds in this new environment. The RDF redesign consultation group will be called back together again in the future.

    Action item

    09.08.2019-3

    Due date

    September 2019

    Responsibility

    Secretariat, ATO

    Description

    The ATO to provide members with a copy of the draft MAAS/MATS snapshot once available.

    Successor Fund Transfer - working group outcomes

    Tracy Holloway updated the group on the Successor Fund Transfer (SFT) workshop. Key messages included:

    • The workshop was held a few months ago with a small targeted group.
    • Focus of the workshop was to review and identify gaps within the published guidance material and look for opportunities to provide further advice and clarity.
    • The issues raised were in respect to reporting, product and system issues. An agreed outcome from the workshop was that more specific examples on the Fund Verification Service (FVS) should be included in the SFT chapter.

    Since the workshop the SFT Protocol chapter has been updated to incorporate the feedback received. Tracy Holloway provided examples to members of content and scenarios that had been updated.

    Once the protocol has received technical clearance the draft updated protocol will be published on Let's Talk for feedback.

    Fund Engagement updates

    Tracy Holloway provided an update from the Fund Engagement team:

    • The Lost members protocol will be published shortly.
    • Provision of member information chapter to be updated to include guidance on how to use the ATO Publication Ordering Service (PODS).

    Client Relationship Management (CRM) team updates include:

    • The CRM team has been restructured and will be primarily based in Hobart.
    • We will move away from hyper care arrangement and focus on normalising the service offering. The correct channel for queries is Super CRT in the first instance unless queries relate to software issues then they continue to be dealt with by the Digital Partnership Office (DPO).

    Agile team updates include:

    • An agile working team was formed to engage with internal and external stakeholders to gain insights on what is working well for funds engaging with the ATO and what we can improve on.
    • The team reviewed all areas where funds have touch points into the ATO including CRT, DPO, Private Groups and International (PGI) and the various support systems we have in place. As a result of the review a number of recommendations were made – some of which have been implemented already.

    Jess Hipsley joined the group to discuss the Super CRT service standards. Members provided the following feedback:

    • Super CRT team are very professional and should be congratulated given the high volume of emails they receive.
    • Some of the turnaround times need to be looked at given the world of MAAS and MATS reporting where we have the timeframes to report.
    • An acknowledgement other than the automatic response would be appreciated.
    • Some of the codes Super CRT use need refining. ‘Other’ has a 10 day turn around advising a client it will be at least two weeks for a response is not ideal.
    • Super CRT to be mindful of advice given, when it has compliance impacts.

    Jess Hipsley thanked the group for the feedback and noted that Super CRT are working to streamline processes and response times.

    Larissa Evans closed out the conversation by acknowledging certain scenarios that raise concerns and suggested these be covered in a future agenda item.

    Other business and close

    Larissa Evans introduced Graham Whyte to present observations on the First Home Super Saver Scheme (FHSSS). Key messages included:

    • The ATO has been administering this scheme for 12 months now helping 3,300 individuals access 39.4 million dollars to purchase their first home.
    • We have recently done an internal review of processes and one area of concern is the time funds are taking to return the release authorities to the ATO. We are still in the process of analysing that data and want to work closely with funds to see if there are any improvements that we can make.
    • Under the legislation the Release Authorities need to be processed within ten business days. Early analysis indicates about 40% of the Release Authorities are returned to the ATO within 15 elapsed days. This means that 60% is not within that 15 elapsed days. To give more context 37% is within 16-to-25 days, 12% is within 26-to 35 days, 5% is within 36-to-45 days, and around 6% are 46 days or greater.
    • Members were invited to provide suggestions and/or insights to the FSE Governance mailbox on issues that may be impacting the timeliness of release authorities.

    Larissa Evans thanked members for their attendance at the first SAG meeting.

    Attendees

    Attendees are listed below.

    Organisation

    Members

    ATO

    Larissa Evans (Chair), Superannuation and Employer Obligations

    ATO

    Ian Morgan, Superannuation and Employer Obligations

    ATO

    Jessica Hipsley, Client Account Services

    ATO

    Louie Markovski, Superannuation and Employer Obligations

    ATO

    Phil Ide, Client Account Services

    ATO

    Tracy Holloway, Superannuation and Employer Obligations

    AMP

    Grant McPherson

    ANZ Wealth

    David Delaney

    Association of Superannuation Funds of Australia

    Spiros Koziaris

    Bravura Solutions

    Ley Caldwell

    BT Financial Group

    Jimmy Sun

    Colonial First State

    Brett McLeod

    Commonwealth Bank of Australia CommInsure

    Geoff Ferguson

    Commonwealth Superannuation Corporation

    Lex Dransfield

    Grow Super

    Tim Coulter

    IOOF

    Heide Stewart

    Iress

    Andrea Cooper

    Link Group

    Mary Gale

    Link Group

    Sue Pearce (Co-chair)

    Mercer

    Narelle Telfer

    National Australia Bank

    Ian Roberts

    OneVue

    Meegan Punch

    QSuper

    Catherine Best

    SuperChoice

    Chris Denney

    TelstraSuper

    Nimalan Puvanasuntharam

    UniSuper

    George Strilakos

      Last modified: 26 Sep 2019QC 60202