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  • SASG minutes 14 September 2016

    Meeting details

    Venue:

    ATO Office , 52 Goulburn Street, Sydney

    Date:  

    Wednesday 14 September 2016

    Start:  

    10.00am

    Finish:  

    2.40pm

    Chair:  

    Cathy Cox

    Secretariat:  

    Tracey Hughes

    Contact phone:  

    07 3213 8837

    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.

    Attendees

    Industry

    Ms Amanda Gunn

    Mercer Australia

    Ms Andrea Cooper

    Financial Synergy

    Ms Ari Gerasimou

    CBA CommInsure

    Ms Fiona Galbraith

    ASFA

    Mr George Strilakos

    Unisuper

    Ms Heide Stewart

    IOOF

    Mr Ian Roberts

    NAB

    Ms Jayne Pocock

    Qsuper

    MS Sharon Panton

    Link Group - GESB

    Ms Karen Downes

    Link Group - Superpartners

    Ms Louise Hemar

    Pillar Administration

    Mr Martin Mikulicin

    BT

    Ms Mary Gale

    Link Group - Syncsoft

    Ms May Low

    CBA - Colonial First State

    Ms Rebecca Scott

    Perpetual Investments

    Mr Lex Dransfield

    Commonwealth Superannuation Corporation

    Ms Sue Pearce

    Link Group - AAS

    Mr Timothy Coulter

    KPMG

    Ms Tina Cifelli

    AMP

    Ms Gemma Lipovski

    Precision Administration

    Ms Kelly Kerr

    BT

    Ms Maria Anislag

    Zurich

    Mr Sam Finucan

    Bravura Solutions

    Mr Anthony Steele

    Super SA

    Mr John Hardas

    Link Group – AAS

    Mr Padraig Houlihan

    CBA

    Ms Narelle Telfer

    Mercer

    Mr Tony Truong

    ANZ

    ATO Attendees

    Ms Cathy Cox

    Assistant Commissioner, Client Services

    Mr Shaun Ferabend

    Director, Client Relationships, Intermediaries & Assurance

    Ms Tracey Hughes

    Secretariat, Superannuation Administration Stakeholders Group

    Ms Linda Cheesman

    Director, Funds

    Mr Jean-Michel Ruffier

    Client Relationship

    Mr Jason Lucchese

    Assistant Commissioner, Superannuation Change Management, Liaison and Individuals

    Ms Annette Thurbon

    Director, Smarter Data Program

    Ms Tracie Crowden

    Assistant Director, Single Touch Payroll

    Mr Ty Winmill

    Director, Single Touch Payroll & SuperStream Program

    Mr David Taylor

    Fund Engagement Team

    Mr Adrian Sirotic

    Senior Project Officer, SMSF Client Engagement

    Mr Michael Connolly

    Director, Integrated Solution Design

    Apologies

    Mr Jun Tang

    OnePath

    Agenda Items

    1. Welcome

    Assistant Commissioner Cathy Cox opened the meeting:

    • Welcomed all in attendance including new representatives and guest attendees.
    • Accepted that no conflicts of interest were advised.

    2. Acceptance of minutes and review of action items

    • Acceptance of previous minutes passed.

    3. Improving the Superannuation Client Experience presented by Ty Winmill

    Superannuation services dashboard to include a number of services running such as SuperTick, EPF and SuperMatch. The Gap in the industry was in the technology space to determine where the services were up in availability and future planning outages. Scope of initial release – SuperTick 1 and 2 on SPR1 platform and will include being on SPR2 platform down the track. One of the key feedback item from the industry is around the availability of the service. Unplanned outages will be included on the portal. Automation of planned and unplanned outage notification is to get a more accurate assessment of what is going on with the portal. API support is system to system call on updates.

    4. Communication Strategy presented by David Taylor

    We are reviewing current content on our website. We are updating content especially in regards to duplicated content. We are looking at quick and better search responses through the website. We are looking for feedback from funds in regards to the website whether it is the search engine or content or actual website itself.

    Action item outstanding from last SASG meeting 25/05/2016 in regards to large fund centralised repository of information – to review the possibility of a centralised repository for important documents and the development of a blog.

    Feedback from this particular proposal sought from funds to ensure fits their particular needs to co-design the repository with the funds. Also input sought from the funds on the proposal.

    5. SuperStream member information eXchange (MiX) presented by Tracie Crowden

    • Information provided in regards to mandating the reporting of opened and closed accounts. Scenarios were prepared to help industry know when to notify the ATO of an open and of a close account.
    • A gap has been identified between introducing the mandate of open and close accounts and when we introduced the MiX service, which gives us a full picture of the member within the Fund. We need to amend the legislative instrument to mandate the open and close account. If opening and closing account does not meet the intent, funds are not obliged to notify the ATO. The draft legislation, draft 4, will be sent to the industry to provide feedback. The legislative instrument will be further changed when MiX is introduced.
    • Readiness to deploy – SuperTick – 95% of funds stated they would be ready to implement and deploy version 3 and to mandate closed and open accounts by end of January 2017. The ATO will be sending out a readiness checklist to the funds around late October, early November to get a sense of where the funds are at and who might be falling behind.
    • By end of January 2017, system would have been tested and ready for deployment.
    • Annual MiX MCS is not due until October 2018 – the co-design activities will recommence with industry in the first quarter of 2017 - Amendments and prior year processing are still issues the ATO are exploring.
    • Industry to send any feedback to SuperStream or CRT mailbox or Alert.

    6. SuperStream Rollovers V2 Implementation Update presented by Annette Thurbon

    • Industry update provided to SASG members on readiness, testing and production cutover for Rollovers V2 release for October 2016 (B2B) and November 2016 (G2B).
    • Corrections made to start and end date in 2017 for ATO to Fund Contributions (G2B) – May is the start date and August is the end date.
    • B2B – we are looking for test partners. In term of the gateway, 90% of the testing is complete.
    • Integration testing – 40% complete.
    • B2B P2P testing – 20% of the way through.
    • We are encouraging funds to give us an update at the weekly meetings or raise issues.
    • Business Notification Checklist which will be published in the software developers’ website.
    • ATO will be looking for confirmation of:
    • Completion of testing
    • Business readiness check (business operating procedures and support processes)
    • FVS updated (self certification on completion of testing)
    • Pre-production environment ready and available for production cutover; and
    • Point/s of contact, roles and processes for production cutover confirmed
    • We encourage funds to share any issues through SIPO or by emailing the Superstreams mailbox.

    7. Demonstration of viewing transactions online presented by Michael Connolly

    • This is still in development and production and will be available not just for Super but also for individuals and for tax and GST processing.
    • Functionality will exist to download the transactions.
    • From November 14, if funds receive a payment from the ATO directly into the fund account, you will no longer receive a paper statement.
    • If already have auskey access, you can access Superannuation Administration through the Business Portal.
    • USI listed and not name of account.
    • Information is filtered based on years of information, the latest year showing up first. You will be able to filter by processed date and effective date.
    • We have a 10,000 transactions limit due mainly to size.
    • USI will not have any transactions if none have issued to the fund.
    • The running balance showing is based on the filtering applied.
    • Funds will see what the ATO can see.
    • There will be ongoing consultation with the industry.

    8. Single Touch Payroll presented by Ian Colhoun

    Single Touch Payroll (STP) legislation – currently in House of Representatives and the consultation paper has been released and is available on ato.gov.au.

    Unless under specific exemptions, employers with over 20 employees on 1st April 2017 designated as substantial employers will be required to report under STP as of 1st July 2017.

    The number of employees is based on headcount and not FTE. Employee has the normal meaning, contractors will not be included in the head count

    Employers with less than 20 employees can adopt STP reporting and can voluntarily report from 1 July 2017.

    Exemptions may be granted based on the employer circumstances such as:

    • Being located in rural areas with no reliable internet connections
    • Entities which are substantial employees for a short period for that income year
    • Entities impacted by natural disaster which may be granted exemption for a period of time.

    A grace period will be provided for corrections for false and misleading statements for certain applications in STP. Funds need to make corrections after 14 days of the end of the financial year.

    A 12 month transitional period will provide an exemption from penalties for not using STP subject to certain conditions.

    There is no requirement to pay PAYGW at the time of reporting, however an entity may make voluntary payments at the time of reporting if they choose. Payments and reporting have been disconnected.

    Entities using STP will be relieved of their obligation to issue payment summaries and provide annual report to the ATO. PAYG Withholding amounts in STP will be pre-filled.

    Process for MCS will not be changed with STP. STP legislation is premised around the employer obligation legislation to provide information to Commissioner.

    8.1 Consultation

    Single Touch Payroll Advisory Group (STPAG) has been created to work collaboratively with industries on a number of issues to help shape and design STP initiative. It is operating initially for a 6 month period which will be reviewed on December 2016 and is currently meeting monthly. The proposed mandatory start date is 1st April 2018 for substantial employers. For voluntary employers the start date is 1st April 2017.

    9. Extension of SuperStream rollovers presented by Adrian Sirotic

    • At the end of October, small businesses should be SuperStream compliant.
    • We plan to introduce new policy proposal to extend SuperStream rollovers to SMSFs and we need to gage industry support on the proposal because we need to do an alert to Treasury by end of September 2016.
    • There has been industry consultation in both Melbourne and Sydney with Super Administrators, SMSF associations, accountants, tax agents, banks, APRA associations and some APRA Fund Administrators.
    • With the proposed extension we want to improve the client and the APRA Fund experience by reducing red tape and compliance costs.
    • APRA funds will still need to have their own checks and balances.
    • The ATO will mandate the service for APRA funds when completing the SuperStream rollover. For employers, it will be considered best practice to use it to ensure the bank details are correct when they send their SuperStream messages.
    • This service planned for the first quarter of 2018.
    • There is a proposal to update the EPF to include the bank details of the SMSF when the individual authenticates themselves and decide to do a rollover from an APRA fund to an SMSF. The EPF and actual extension will be part of next year’s budget proposal so looking at 2018, even early 2019 before it is implemented.
    • Any feedback on proposal to be sent to the SASG mailbox by 21st September.

    10. Other Business

    10.1 USM Protocol Document

    Document will be sent out 14 September 2016 and any feedback to be supplied by 30 September 2016.

    10.2 Large Fund Diagnostic Reports - David Taylor

    The report was sent to 261 funds in March and resulted in a huge improvement from last year with 55% of fund and groups taking part and improving their scores. Specifically, we saw an improvement around the unclaimed money criteria where the ATO has worked very closely with funds. As a result of interacting with those funds we saw a lot of funds improve their diagnostic report scores.

    The ATO has visited most of our key funds this year and the feedback from these visits has generally been very positive. Most funds have indicated that they are happy to go through the same process next year.

    The ATO has commenced completion of the 2017 diagnostic report which will be released in March next year. We invite feedback from the industry to provide comments and suggestions on how to improve the 2017 process and the report itself.

    10.3 POA Process - Linda Cheesman

    The ATO announced that they were not going to run the POA process this year due to the re report process and this was communicated through a CRT Alert. A number of enquiries were received asking if this decision could be reconsidered.

    Members were asked if they wanted this process to occur and a decision was made to run the POA the week beginning 4th October.

    10.4 Budget Changes Update - Cathy Cox

    Our colleagues from Treasury (who were at the last SASG meeting) expressed the value of interacting with the SASG members and this has also been recognised in the ATO.

    11. Close

    In closing Cathy Cox, thanked members for their contribution.

    The next meeting is proposed for Wednesday 30 November 2016.

    Action Items

    Item number

    Agenda reference

    Action required

    1

    10.3

    SOA online - Feedback to be provided as soon as possible

    2

    9

    SMSF Superannuation Rollover Proposal - Feedback by 21 September 2016 to the SASG mailbox

    3

     

    Draft Legislative Instrument - Feedback by 27 September 2016 to the SASG mailbox

    4

    10.1

    Draft Unclaimed Superannuation Money Protocol - Feedback by 30 September 2016

    5

    5

    MiX Service Design - Feedback to SuperStream / CRT mailbox

    6

     

    Superannuation Services Dashboard - Feedback from Funds to CRT mailbox

    7

     

    Centralised repository of information proposal - Feedback to SASG / CRT mailbox

    8

    6

    SuperStream Rollovers V2 implementation testing - Issues communicated to SIPO or SuperStream mailbox

      Last modified: 04 Jul 2017QC 52809