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  • SASG minutes 20 June 2018

    Meeting details

    Venue: ATO Office, 52 Goulburn Street, Sydney

    Date: Wednesday 20 June 2018

    Start: 10.00am

    Finish: 2.35pm

    Chair: Robert Drummond

    Secretariat: Shaun Ferabend

    Contact phone: (07) 3121 7466

    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

    Andrea Cooper, IRESS

    Dianne Sherry, IRESS

    Ari Gerasimou, CBA

    Daniela Palermo, CBA

    Erin Quinn, Unisuper

    George Strilakos, Unisuper

    Adam Wright, CBA

    Heide Stewart, IOOF

    Narelle Telfer, Mercer Australia

    Sam Finucan, Bravura Solutions

    David Delaney, ANZ

    Jimmy Sun, BT Financial

    Dean O’Malley, Super SA

    Catherine Best, QSuper

    Tina Cifelli, AMP

    Ian Roberts, NAB

    David Kerr, NAB

    Sue Pearce, Link Group

    Zain Dom, Link Group

    Kelly Kerr, AMP

    Timothy Coulter, OneVue

    Martin Mikulicin, BT Financial

    Maria Anislag, Zurich

    Tania Wilson, IOOF

    Mary Low, Colonial First State

    Darren Cox, Super SA

    Lex Dransfield, Commonwealth Super Corporate

    James Barnwell, Perpetual

    Anthony Relf, Mercer Australia

    ATO Attendees

    Robert Drummond, Assistant Commissioner, Client Account Services

    Shaun Ferabend, Director, Client Relationships, Intermediaries & Assurance

    John George, Director, Project Lead – Budget Measures and Change Implementation

    Reece Parry, Director, Employer and Individual Client Engagement

    Annette Thurbon, Director, SPR SS Readiness and Implementation

    Ian Bullman, Director, Employer and Individual Client Engagement

    Louie Markovski, Director, Super Individuals Super Experience

    Frances Sainsbury, Director, Application Architecture & Design

    Graham Whyte, Assistant Commissioner, SPR Tech Leadership and Advice

    Helen Morgan, Director, Inds New Measure Project

    Loretta Green, Assistant Director, Client Account Services, Client Relationship Team

    Stephanie Tanchevski, Business Analyst, Client Account Services, Client Relationship Team, SASG Administration

    Apologies

    Brett Mcleod,CFS

    Mary Gale, Synchsoft

    Marcia Pitstock, Onevue

    Jayne Pocock, QSuper

    Matt Pritchard, SunSuper

    Fiona Galbraith, ASFA

    Edwins Fung, ANZ

    Brad Ivens, Ernst Young

    Rebecca Scott, Perpetual

    John Hardas, Link Group

    Julie Steed, AET

    Jun Tang, Onepath

    Namphi Nguyen, CFS

    Sarah Borrie, Link Group

    William Moy, CBA

    Elissa James, CBA

    Lousie Hemar, Mercer

    Rebecca Scott , Perpetual

    Agenda items

    1. Welcome

    Assistant Commissioner, Client Account Services, Robert Drummond opened the meeting:

    • Welcomed all in attendance including new representatives and guest attendees.
    • Acknowledgment of the traditional owners and custodians of the land.

    2. 2018 Budget Measures - Overview of the Superannuation policy impacts with an industry focus

    Presented by Louie Markovski

    2.1 Protecting your Super Package

    Funds advised that low balance accounts have been reduced.

    ATO will proactively pay ATO held Unclaimed Super Monies (USM) into active accounts. Additional reporting measures and structure required to implement changes to administer the new measure. This will include an option for deferrals and change in the USM code.

    Funds will be required to determine if the account is inactive and if no contribution has been made in 13 months. Funds required to pay by 30  October.

    Trustees will be prevented from charging additional fees on accounts with a balance less than $6000.00.

    USM to use the existing SuperStream channels, Funds advised 2 x USM messages can be sent through one Unique Superannuation Identifier.

    2.2 Self-Managed Super Funds (SMSF)

    SMSFs and small APRA funds will be required to become SuperStream compliant.

    The number of members an SMSF can have will increase to 6.

    Compliant SMSFs are required to engage in an independent auditor every 3 years.

    2.3 Other Measures

    Work test exemption for recent retirees. Retirees aged 65-74 who work more than 40 hours in 30 days will be able to make voluntary contributions.

    Better integrity over deductions for personal contributions with the development of a new compliance model for the ATO with changes in Member Account Transaction Service reporting for financial years. ATO will cross check reported amounts with tax returns. Industry to work with ATO to streamline processes.

    With Super Guarantee (SG) updates individuals with multiple employers will provide ATO and funds with certificates to advise that SG will not be paid from specified employer to avoid breaching concessional contributions cap.

    SG Incentives bill with incentives for employers to pay any unpaid super – this will include improved visibility for employees, education and training courses to help and support viable businesses. Greater penalties and firmer actions will be taken.

    2.4 Consultation with Industry

    ATO aim to consult and co-design with industry through more regular communications and monthly meetings.

    3. Improving the Client Experience for Super Surcharge

    Presented by Louie Markovski

    Surcharge product abolished in July 2005 with no new surcharge liabilities to be raised, general powers of administration to manage surcharge.

    Moving forward we will manage individual credits, issue credit assessments and pay the individual. We have identified circumstances where individuals have multiple accounts which have now been amalgamated, so that payments only issue to the one account.

    Following the 30 June 2018 any assessment variation advices issued are to contact the ATO through the Super CRT mailbox.

    We have finalised a process by which credits are returned to individuals rather than the fund. This process will be run twice a year to apply annual crediting of interest.

    4. MAAS/MATS Implementation Update

    Presented by Annette Thurbon

    Member Account Attribution Service (MAAS) has been in operation for 2 months, we have been consolidating the learnings. Currently we have 9 funds using MAAS as business as usual.

    We have received 1500 to 2000 MAAS transaction and Digital Partnership Office account managers working through plans. All updates are available on Let’s Talk pages.

    Member Account Transaction Service (MATS) deployed from December, with an expectation to have 10 funds on board by the end of June. We are currently finalising internal readiness, the final MATS Business Implementation Guide (BIG) is now available. The legislative instruments are now registered.

    Practical intelligence gathered throughout the on boarding indicates that more work is required for the stability of the system to begin deployment. Trustees have advised weekly updates are favourable through the Standard Business Reporting (SBR) dashboard.

    Funds have advised a Digital Service Provider (DSP) and ATO disconnect with what is communicated including access manager problems.

    Action Item 9.0 from March SASG meeting addressed in MAAS BIG.

    Action Items

    Dashboard to include visual for MAAS update

    Message Implementation Guide (MIG) is not clear on who needs AUSKEY permissions. Is it the DSP? Funds think that it needs to be the DSP that feeds the data to the ATO.

    5. Compassionate Release of Superannuation

    Presented by John George

    The regulation has been enacted, further information was provided to industry in Super CRT alert 53.

    Change from Department of Human Services (DHS), members to now log into ATO portal. The ATO portal application is a one-step streamlined process, all evidence, quotes and invoices are attached to the application. If member was to lodge via paper, we have developed one paper form to allow members to use the one form for single or multiple categories.

    The funds will be simultaneously sent an approval letter electronically through the Bulk Data Exchange (BDE), email addresses to be updated through the business portal.

    Member will apply with DHS up until the 30 June, DHS will keep phone and email lines open for 3 months post transition. Applications will be made via ATO from 1 July.

    We have a 28 day review date to overturn rejections. A CRT alert will be issued with Q&A for industry.

    Approval/ partial approval letters will be issued to members via MyGov all approval letters will issue electronically to funds regardless of how the member applies. The determination does not expire.

    Action Items

    Confirm BDE rules. Include the history of notifications, is this still able to be seen?

    Confirm transitional arrangements with DHS – telephone/email service. Does DHS have commitment post 01 July 2018

    Post meeting Response to action Item

    Questions answered in CRT alert 058/2018 

    6. First Home Superannuation Savers Scheme (FHSSS)

    Presented by John George

    Individuals to apply via portal, it is a once in a lifetime application. FHSSS have a One year limit of $15,000.00 or multiple year limit of $30,000.00 with commonwealth debt to be offset first.

    The member has 12 months to purchase after the payment has been released with an option to request a further 12 month extension. If the payment is not used, members can choose to keep the payment which may be subject to tax or recontribute it to the fund in which case it is treated as a non-concessional contribution amount. The member will need to advise the ATO if the payment is being returned.

    Trigger points for FHSSS will send a Release Authority (RA) to funds. This is similar to the existing RA process; the RA will have a 10 business day validity and Penrith address for returns. As an interim solution the RA will be issued in the same way as existing RAs.

    Industry advises that member enquiries have been relatively low.

    Action Item

    Will fact sheets for FHSSS be distributed via CRT alert?

    7. Downsizing Measure

    Presented by John George

    From 1 July 2018 eligible individuals 65 years and older will have the opportunity to contribute proceeds from the sale of their home into their superannuation. There is no maximum age limit.

    Downsizer contributions will not count towards concessional or non-concessional superannuation caps and can be made regardless of the total super balance. Individuals can contribute up to $300,000.00 or up to $600,000.00 per couple.

    Industry advise there has been low levels of member interest.

    Action Item

    In downsizer legislation 10A there is a signed declaration. Funds may not be able to accept unless they have the authority on file, where do they contact the ATO for this information?

    Post meeting Response to action Item

    We generally consider that Funds accepting a downsizer contribution Approved Form would need to satisfy themselves sufficiently that the relevant authorisation exists. However, given the feedback from the SASG we are currently reviewing the declaration on the Downsizing Approved form and associated Instrument of Approval(IOA). We will advise this group of any changes that may result.

    8. Streamlined Release Authority Updates and Duplicate Records creating incorrect Total Super Balance

    Presented by Helen Morgan

    From 1 July 2018 modified Release authority letters will be issued allowing funds 20 business days to process. Funds may receive old letters for the 3 months following 1 July; if funds receive the old letter they are to follow the old process. If the new letter is received the new process is to be followed.

    All letters for the 2017/18 financial year for excess concessional contributions and excess non-concessional contributions will be issued in October.

    Once the letters are posted or taxed by the fund, the fund has met its obligations.

    If a member’s information is reported differently on the Transfer balance account report (TBAR) and Member contributions statement (MCS) their Total superannuation balance (TSB) may be incorrect. When a members account ID on the MCS is different to the TBAR lodgement our system will double count. The account information must match across MAAS, MATS, TBAR and MCS.

    Action Item

    Copy of updated release authorities and updated letters to start issuing in September to SASG group.

    9. Small Business Super Clearing House (SBSCH)

    Presented by Ian Bullman

    ATO advised that SBSCH processing is Business as usual as of April; we have no new system issues. We have deployed fixes around validation.

    Funds have advised members and employers are contacting the ATO and being told payments are with funds impacting their complaints and call centres. ATO have advised we will update ATO scripting and training for our call centres including Payment variation advice (PVA) procedures.

    Funds have advised they are receiving payments without data, ATO have advised that new messages are validating and some old messages are still triggering through incorrect USIs.

    Funds advised that messages were being sent successfully however the stated USI was invalid and as a result no CTR was sent.

    ATO advised that 80% of existing DHS users came across with 40% new users.

    A total of $5.5 million has been processed successfully this quarter with 70% in an acceptable time frame. Reports show 7000 Withholder payer number (WPN) users in the last month and that 80% of the users that came across from DHS have used Auskey

    When asked why employers were not using SBSCH, they advised:

    • Agents make payments on their behalf
    • They are awaiting on Single touch payroll (STP) set up
    • Employers had not yet made payments
    • Some went to commercial clearing houses
    • Issues with the email addressed used
    • Employers didn’t want to go through authentication on MyGov
    • Microbusinesses didn’t want staff accessing their MyGov

    Action Items

    Update to scripting and procedures.

    What bank account is being used for SBSCH is it the one from the originating payment?

    Clarify the PVA message and is it going to the correct account?

    Validation message getting a successful message but it didn’t go through. Are these the remediation cases and has it been fixed?

    Post meeting Response to action Item

    Smart Scripting updates have been actioned.

    A targeted letter has been sent to funds to advise which account they payment is to be returned.

    Data messages with successful validation messages are being reviewed; there are still cases that require remediation.

    10. Transfer Balance Cap Update

    Presented by Helen Morgan

    The member will have up until when a commutation authority is sent to the fund to respond to or reject the determination, following that the ATO will work with the Fund to calculate.

    The most common enquiries include members not objecting to the determination and advising that the commutation amount is incorrect and believe that the fund has reported incorrectly. ATO will make the calculation however we cannot disclose any information reported by another fund due to privacy. Members can log into their MyGov to review what has been taken into account.

    If a member commutes an amount, funds need to advise ATO to revoke before we issue a commutation authority.

    If we issue a determination and the member commutes the same amount, it is to be reported as a Commissioners Commutation Authority (CCA) event to the ATO, we will process and re-evaluate then issue the appropriate correspondence.

    ATO advice that SMSFs will soon on board for TBAR.

    Action Items

    Notes from the Client Identifier workshop to be sent to the SASG group.

    Send service commitment codes to Helen Morgan and Sue Pearce for review.

    Post meeting Response to action Item

    Email was sent to Sue Pearce to review the updated service commitment codes.

    11. APRA fund irritants and APRA fund Communications Reference Group meeting updates

    Presented by Graham Whyte

    Industry have advised that:

    • CRT alerts are valued for on time information.
    • Graphics worked well.
    • The content on the ATO website is good but can be hard to find.
    • Industry have advised they re-use our communications with clients.
    • Fact sheets and FAQs are important.
    • Terminology on the website needs to be kept consistent.
    • The current inbound channels are appropriate.

    ATO have a beta testing site with members of the community to test changes to the website

    High level irritants as advised by industry:

    • Inability to download FAQ or documents as PDFs from the Let’s Talk page, advice that it is not very user friendly.
    • Protocol documents are now a web document, funds are advised when updates are made but they are unable to locate the update. Funds would like notice of what has been updated.
    • Advice that ATO payment reference numbers (PRN) are based on product, as funds cannot differentiate products.

    Action item

    APRA funds expressed a desire to be able to download FAQs from Let’s talk – (This is being added to the APRA Fund Communications Reference Group meeting).

    APRA funds asked for more visibility of changes to Protocol documents as they can’t see what changes have been made – (This is being added to the APRA Fund Communications Reference Group meeting).

    12. What is the best way an applicant / intermediary can contact a Super Fund regarding the status of a submitted DASP?

    Presented by Shaun Ferabend

    The ATO Departing Australia Super Payment (DASP) online application was updated in March 2018, the ATO has since received correspondence from individuals and intermediaries who have submitted a DASP to their fund and have not had a response within 28 days. ATO have determined applications have been received by the fund and are attempting to contact the fund and escalate via email.

    Issues with this process are that the intermediary or ATO are not listed as authorised contacts.

    ATO recommends that funds establish an internal process to search clients DASP to reduce interaction touchpoints and improve client experience.

    ATO put the following question to the funds -

    Can the Funds provide details of how they currently deal with individuals / Intermediaries in this type of situation? Responses can be provided via email to Super CRT mailbox.

    Action Items

    Funds would like to have a better understanding of Payment reference Numbers (listed as action 12.1)

    Post meeting Response to action Item

    • Call centre staff do not have access to search however they would usually contact either the team who does DASP or they can see if it is in the ‘workflow’ system
    • Based on the above comment the funds then asked if the ATO could forward examples for them to investigate
    • Some funds mentioned that occasionally the wrong ABN is applied (Trustee instead of fund) and this can cause delays
    • In regards to ATO PRNs - A SuperStream initiated PRN is derived as follows “ATO0(+a system generated disbursement ID)”. The disbursement ID does not translate to any particular product.

    Agenda Item

    Action required

    Who

    What

    When

    4.0

    Dashboard to include visual for MAAS update

    Annette Thurbon

    Future Enhancement

    Done

    4.0

    MIG is not clear on who needs AUSKEY permissions. Is it the DSP? Funds think that it needs to be the DSP that feeds the data to the ATO

    Annette Thurbon

    Instruction clarified in meeting

    Done

    5.0

    Confirm BDE rules. Include the history of notifications, is this still able to be seen?

    Confirm transitional arrangements with DHS –telephone/email service? Does DHS have commitment post 01/07/2018.

    John George

    CRT alert 058/2018 

    Done

    6.0

    Will fact sheets for FHSSS be distributed via CRT alert?

    Reece Parry

    Not completed

     

    7.0

    In downsizer legislation 10A there is a signed declaration. Funds may not be able to accept unless they have the authority on file, where do they contact the ATO for this information?

    Reece Parry/Julie Rowland

    Addressed in minutes

    Done

    8.0

    Copy of updated release authorities and updated letters to start issuing in September to SASG group

    Helen Morgan/Blair

    Planned

    Done

    9.0

    Update to scripting and procedures. What bank account is being used for SBSCH is it the one from the originating payment?

    Clarify the PVA message and is it going to the correct account

    Validation message getting a successful message but it didn’t go through. Are these the remediation cases and has it been fixed?

    Ian Bullman/Danny Parker

    Smart Scripting updates

    Targeted letter to affected funds

     

     

    Yes – Still more cases for remediation

    Done

    Done

     

     

     

    Check

     

    Done

    10

    Notes from the Client Identifier workshop to be sent to the SASG group

    Send service commitment codes to Helen Morgan and Sue Pearce for review

    Helen Morgan

     

     

    Loretta Green

     

     

     

    Email

     

     

     

    Done

    11

    APRA funds expressed a desire to be able to download FAQs from Let’s talk –(This is being added to the APRA Fund Communications Reference Group meeting)

    APRA funds asked for more visibility of changes to Protocol documents as they can’t see what changes have been made –(This is being added to the APRA Fund Communications Reference Group meeting)

    Shaun Ferabend/ Julie McKay

     

     

    12

    Funds would like to have a better understanding of Payment reference Numbers (listed as action 12.1)

    Shaun/Frances Sainsbury

    Email

    Done

    Meeting closed 2.35 pm.

      Last modified: 09 Oct 2018QC 56962