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  • SASG minutes 25 May 2016

    Meeting details

    Venue:

    ATO Office , 52 Goulburn Street, Sydney

    Date:  

    Wednesday 25 May 2016

    Start:  

    10.00am

    Finish:  

    2.40pm

    Chair:  

    Cathy Cox

    Secretariat:  

    Tracey Hughes

    Contact phone:  

    07 3213 8837

    Please 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

    Ms Janice Lo

    NAB

    Ms Jayne Pocock

    Qsuper

    Mr Jun Tang

    OnePath

    Ms Louise Hemar

    Pillar Administration

    Ms Mary Gale

    Link Group - Syncsoft

    Mr Tony Bishop

    CBA – Colonial First State

    Ms Sharan Panton

    Link Group – GESB

    Mr Lex Dransfield

    Commonwealth Superannuation Corporation

    Ms Sue Pearce

    Link Group – AAS

    Mr Timothy Coulter

    KPMG

    Ms Tina Cifelli

    AMP

    Ms Anne Dixon

    Precision Administration

    Ms Kelly Kerr

    BT

    Mr Ryan O'Moore

    Zurich

    Ms Maribel Ingelmo

    CBA

    Mr Anthony Steele

    Super SA

    Mr John Hardas

    Link Group – AAS

    Ms Angela Falzarano

    Tech Mahindra

    ATO Attendees

    Ms Cathy Cox

    Assistant Commissioner, Client Services

    Mr Louie Markovski

    Director, Employers & Self-Managed Super Funds

    Mr Shaun Ferabend

    Director, Client Relationships, Intermediaries & Assurance

    Ms Tracey Hughes

    Secretariat, Superannuation Administration Stakeholders Group

    Ms Loretta Green

    Assistant Director, Superannuation Product Manager, Client Services

    Mr John Shepherd

    Assistant Commissioner, Superannuation Funds Segment

    Mr Jason Lucchese

    Assistant Commissioner, Industry & Government Engagement and Governance, Superannuation

    Ms Annette Thurbon

    Director, Smarter Data Program

    Ms Louise Elliott

    Director, Superannuation Funds Segment

    Mr Mark Barnett

    A/g Director, APRA Fund Client Engagement

    Ms Tracie Crowden

    Assistant Director, Single Touch Payroll

    Ms Anna Pace

    Assistant Director, Superannuation Fund Strategies & Engagement

    Mr Peter Moore

    Client Relationship, Superannuation Administration Stakeholders Group

    Apologies

    Mr Ian Roberts

    NAB

    Ms Maria Anislag

    Zurich

    Mr Martin Mikulicin

    Bravura Solutions

    Ms Rebecca Scott

    Perpetual Investments

    Ms May Low

    CBA – Colonial First State

    Mr Graeme Colley

    SMSF Association

    Ms Karen Downes

    Link Group - Superpartners

    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, following on from a correction to an error contained in the draft minutes with regards to the lodgement of the Superannuation Release Authority Statement (RAS).
    • All action items resolved from previous meeting

    3. ATO Reinvention update presented by Mark Barnett

    3.1 Draft Schedule

    In our previous updates we have detailed the process of distilling down the over 200 ideas and initiatives from our Future Experience Workshop late last year. The result was to identify 18 Priorities across 5 key areas. Having been through the process of assessing each initiative in terms of merit, potential cost to deliver and degree of expertise required we are now beginning to prioritise and schedule the work. We aim to have completed the schedule in the coming weeks and will seek the group’s feedback and thoughts out of session.

    Due to recent Budget announcements, we are also assessing the need to re-balance our prioritisation of the initiatives.

    3.2 Proposed Communication Strategy

    As we work through scheduling larger pieces of work, we are identifying groups of initiatives that can be ‘bundled’ together ensuring that both opportunities for leverage points and dependencies can be identified.

    An example of this approach is the proposed ‘Communications Strategy’, which was provided to the group in the briefing notes.

    Discussion Points

    The group’s comments and thoughts around the attached schematic were requested:

    1. Proposed Communications Strategy - feedback
    2. Are there any leverage points to be exploited (for example, are there any opportunities for Funds & ATO to collaborate more closely where particular expertise clusters exist)
    3. Does the group feel that the ATO Reinventing program is on track? Can we do better, what’s the client experience of our reinventing journey to this point?

    Member Feedback

    1. More timely updates on the web:
      1. Keep us informed of planned outages & system issues
      2. Advise us of what you’re working on and any delays
      3. Even if there is no critical updates, acknowledgement of what the ATO is working through would be appreciated.
       
    2. Is the appointment of a dedicated Client Relationship Manager for industry still on the table?
    3. One central repository would be appreciated; this would alleviate the need to review multiple sites trying to locate information.
    4. SuperStream forms were issued via email to members but were not provided through the Software developers homepage and product register (softwaredevelopers.ato.gov.au (commonly known as SIPO)).
    5. Presentations sent out do not provide sufficient detail of what was discussed. A webinar was suggested.

    Response

    1. It is quicker for members to be emailed than to get items published on the web. We appreciate that this is not ideal, however when there is an identified need to quickly communicate with members the optimum communication delivery method will be utilised. It was acknowledged that messages on ato.gov.au could be sharpened and links provided to the Software developers homepage and product register (softwaredevelopers.ato.gov.au (commonly known as SIPO)).
    2. A Client Relationship Manager role is under consideration. A feasibility study with particular reference to cost is being undertaken.
    3. The possibility of a ‘blog’ which funds could participate in was mentioned. Via co-design with the group, a platform could be created which would include industry and government tools.
    4. SuperStream forms are now on the Software developers homepage and product register (softwaredevelopers.ato.gov.au (commonly known as SIPO)), however prior to publishing they were emailed.
    5. The proposal for a webinar was acknowledged and will be considered.

    4. Rollover Implementation 2016 presented by Annette Thurbon

    4.1 B2B/G2B Rollover Implementation & Readiness

    Members were provided with an update on Rollover MIG v2.0 Implementation Plan/Cutover key dates.

    1. ATO External Vendor Testing Environment available for gateway testing – June/July 2016
    2. Peer to peer testing (including v 1 and v2) – July/Aug 2016
    3. EVTE Test with ATO –July/Oct 2016
    4. Production Cutover 17 Oct 2016 – 11 Nov 2016. B2B cutover completed Nov 2016
    5. Production Cutover 15 Nov 2016 – 16 Dec 2016. G2B cutover completed Dec 2016
    6. Super Tick Open/Closed account mandated – Jan 2017
    7. APRA Fund member reporting Member information eXchange (MiX Project) Nov 2017:
      1. Real time reporting of member account status
      2. Annual contribution reporting
      3. s20C replaced with IRR
      4. Unclaimed amounts transferred to ATO via Rollover MIG
       

    Assumptions:

    1. Testing includes Gateway integration testing and Peer to Peer testing.
    2. Receivers must be able to distinguish between versions and process accordingly
    3. Senders including ATO must check FVS for the version the receiver can cater for
    4. Senders must send in the highest version available to both the sender and receiver
    5. Response messages to any request must be in the version of that request
    6. Late adopters must manage sending and receiving through partners
    7. All receivers must be able to receive v2 prior to any v1 close out activity

    Readiness:

    1. G2B commence as a new interaction from 15/11
    2. PROD Readiness for B2B and G2B managed through FVS
    3. ATO monitor readiness and report through to SSRG/Nerve Centre
    4. Tech Support through ATO
    5. ATO Transactions are dependent upon availability of USM Payment to Trustee

    Trustees received APRA/ATO letter in April 2016 regarding rollover readiness:

    1. Call to action
    2. Reminder about updates (FVS and Supertick), and
    3. Asked to provide readiness checklist dates Rollover implementation by 30 April 2016

    Three key dates:

    1. Testing with your gateway
    2. Peer to peer testing
    3. Production cutover/release (B2B – from 15 Sept; G2B – from 15 Oct)

    Further readiness dates:

    1. FVS changes in July 2016 and
    2. SuperTICK v3 – Closed and Open Accounts – January 2017

    To date 130 responses have been received with funds advising they are predominantly ready for implementation. The readiness picture is about 90%.

    A handful of funds have advised they cannot meet the implementation point. APRA have advised that there are no extensions.

    The ATO is working with those funds to understand why they are unable to meet implementation and when they will be ready.

    The rollover schematron will be hopefully published in June.

    The rollover implementation group meets monthly, however the frequency is being reviewed and may change for fortnightly.

    Action item: Members were invited to join in this process if they were interested. Notification is to be made to Annette Thurbon.

    4.2 Testing & Orchestration Approach

    Outline of both B2B and G2B test use cases developed in consultation with industry and included in the industry conformance suite - to be published end of May.

    The timeframes for B2B and G2B appear to be track based on ATO internal readiness and industry readiness checklist responses.

    External Vendor Testing Environment (EVTE) – Industry feedback received on options including self-service testing; further details including design and support arrangements to be shared with stakeholders next month.

    Once we have finished processing the readiness responses we will be looking to:

    1. Schedule funds and gateways for B2B cutover and G2B peer to peer testing
    2. Provide further details of the processes for each of the test phases for B2B and
    3. Determine what is required for certification

    NB: It will not be possible to undertake concurrent testing of G2B and B2G as the ATO is still working on the detailed design of B2G Nov 2017 (fund to ATO) rollover implementation.

    4.3 Next Steps

    1. Rollover Implementation Working Group convenes on a regular basis to discuss readiness issues and provide industry with support
    2. Industry readiness to be published to SIPO/ato.gov.au website – June 2016
    3. ATO will work with funds and their gateway to develop a testing and production cutover schedule
    4. Provide more detailed design and support arrangements for EVTE
    5. Provide an overview of ATO’s internal readiness picture; and
    6. Provide the next level of detail to support testing and cutovers including certification processes

    5. Rollover Implementation (B2G) 2017 presented by Tracie Crowden

    The focus of this presentation was fund to government reporting of Unclaimed Super Money and the replacement of the USMS. The rollover V2 message contains changes that will not be implemented until November 2017 however industry is required to build the message in its entirety now. A design intent document for G2B was provided to members to illustrate the process. Tracie reinforced to members that there is 18 months to refine this process and get it right.

    The current bi-annual statement will be replaced and we are removing the USM statement and the S20C notice.

    Members were provided with a one page summary of the B2G Unclaimed Super Money design:

    1. S20c notification replacement – ATO to fund notification
    2. Transfer of unclaimed accounts - Fund to ATO transfer
    3. Error response messaging - Fund to ATO in response to the temporary residents

    Members were asked for feedback & their thoughts as to what would work. There is still time to influence the design. Feedback can be provided via the SASG mailbox.

    The current bi-annual statement will be replaced and we are removing the USM statement and the S20c notice.

    5.1 Section 20c notice

    The s20C equivalent will be sent out twice a year (the timing hasn’t changed), however it will form part of the rollover standard v2.0.

    There will be one initiate roll over request for each fund member the Tax Office knows about. The forum was asked if this would work. Are there additional efficiencies that can be included? Will this proposal work with your design?

    Timing:

    1. Currently with B2B rollovers there is a 3 day response rate – funds can respond to the s20C IRR within 3 days or wait and transfer the temporary resident accounts to the ATO with their other general unclaimed accounts
    2. The ATO would be interested in knowing which scenario is most likely?

    Error Messages

    There are two specific error codes that the ATO want funds to use in the event that they cannot action the IRR.

    1. No longer a member (will be rare under Super TICK 3)
    2. Pending claim

    It was noted that the standard does not restrict the use of any error so the User Guide will describe which errors are appropriate in these instances. The ATO want funds using the right message for the right response. The ATO is looking to see if there is an opportunity to allow the ATO to send revocation notices on the back of an error response.

    It was confirmed that funds will not be required to conduct secondary searches for additional unclaimed accounts as the ATO will have knowledge of all accounts and will send an IRR for each known account.

    5.2 Unclaimed Super Money Statement

    Still bi-annually, funds will determine their unclaimed accounts and send a Rollover Transaction Request (RTR) with the USM reason code. This will include responding to the IRR for temporary residents if the fund does not action the IRR automatically.

    5.3 Law changes

    The ATO is recommending the following law changes:

    1. That there is no obligation to send us a ‘nil lodgement’ advice. The Tax Office will look into using the Commissioner’s Discretion to achieve this until legislated.
    2. That there be no obligation for funds to advise us that a member is no longer lost.

    Another issue needing clarification is in regard to use of Reason Code ‘R’ (temporary resident) when the fund was not in receipt of an IRR (s20C notice). Currently the ATO rejects these cases but in this new process we may accept these (as this might cover the rare event where a new account was opened) the ATO will run some compliance activity after the event to ensure the correct codes have been used. 

    Also under consideration is:

    • Reconciliation - where there is a discrepancy in the dollar value, the money will not be returned.
    • Error response messaging - the ATO is looking into what error response message might be sent from an RTR.

    A question was posed to members with regards to the action they take with a business to business rollover where there is a discrepancy.

    Action item: Members to provide Tracie Crowden feedback with regards to the action they take with a business to business rollover where there is a discrepancy.

    5.4 Amendments

    The solution for amendments is still being worked through. SuperMatch2 is one available solution for claiming amounts back however it was noted that some clients don’t use Supermatch. Members were asked if this was common and what the volumes were.

    Members were reminded that the design isn’t bedded down and we are seeking feedback either via the SASG or SuperStream mailbox.

    6. Single Touch Payroll presented by John Shepherd

    Members were provided with a high level overview of Single Touch Payroll (STP) functionality and an update on the delivery/implementation schedule.

    6.1 Scope for STP

    Single Touch Payroll is a government initiative that enables businesses and employers to report staff salary and wages (including ordinary time earnings) and PAYG withholding amounts to the ATO at the same time they pay their employees.

    1. Superannuation contribution information is reported to the ATO when payments are made by the employer to the fund.
    2. Employers will also have the option to pay their PAYG withholding more regularly, for example, at the same time they pay their staff.
    3. For employers with 20 or more employees, STP reporting will be mandatory from 1 July 2018 (subject to legislation being passed). Businesses (with an STP solution) can choose to start STP reporting from 1 July 2017.
    4. STP includes an optional streamlined process for individuals commencing employment. An employer can allow their employees to complete forms such as TFN declaration and Superannuation Choice using pre-fill in myGov or through their business management software.
    5. A Small Business pilot will be conducted in 2017 to demonstrate the benefits for smaller employers. The pilot is intended for employers with 19 or less employees with a focus on understanding the experience of these employers utilising STP.

    There is not a requirement for those employers with less than 20 employees to do anything in STP. STP will, however, be mandated for those employers with 20 or more employees.

    6.2 STP indicative timeline

    1. From April 2017 Early adopter / production testing of STP
    2. July 2017 STP available for employers with a certified STP solution to report on payroll event and offer new employee commencement process.
    3. June 2018 Employers with 20 or more employees mandatory to use STP (subject to successful passage of legislation).

    6.3 STP benefits

    One of the fundamental design principles is this process is driven by positive behavioural changes, not compliance driven changes.

    1. Providing employees with visibility of their total year to date salary and wage income, PAYG withholding amounts and super guarantee contribution amounts as they accumulate.
    2. STP will enable employers and employees to be more assured that all eligible businesses are meeting their obligations. With earlier warning, the ATO can better assist employers struggling to meet their PAYG withholding and super obligations.
    3. To simplify business reporting for employers by leveraging the natural business processes of paying their employees, to meet their PAYG withholding reporting obligation at the same time.
    4. Streamlining of employee commencement processes in relation to forms such as TFN declarations and Super Choice, making it more efficient for some employers and easier for employees to meet requirements through pre-fill in myGov or through their business management software.
    5. The pilot will seek to explore and confirm benefits of STP for those employers with 19 or less employees.

    6.4 STP design consultation workshops

    Industry including software developers and other potential STP solution providers, industry associations, financial institutions and intermediaries joined a session with the ATO and Treasury to hear about the design of STP and provide feedback.

    Six sessions were held in Sydney (20-21 April), Melbourne (28-29 April) and Canberra (5 May). 58 industry participants shared their insights and thoughts regarding STP.

    The consultation plan is expected to be published on the Software developers homepage and product register (softwaredevelopers.ato.gov.au (commonly known as SIPO)) within the next month.

    Discussion

    Cathy Cox highlighted that this forum provided an opportunity to receive feedback from industry in relation to STP and it would be beneficial for John Shepherd to visit this forum again to continue to provide additional information.

    STP feedback can be sent to SingleTouchPayroll@ato.gov.au

    Action Item: John Shepherd to confirm where the consultation plan is to be published.

    Action Item: Request for copy of today’s presentation; will be attached to minutes.

    Action Item: John Shepherd to be invited to the next quarterly SASG meeting.

    7. Super Tick version 3 presented by Tracie Crowden

    Members were provided with an overview of the change to SuperTick V3 in regard to opened and closed accounts. The ATO is aware that this is generating a lot of questions from industry and this presentation was designed as an opportunity to provide more detail and seek feedback from industry.

    November 2017 is the proposed deployment date for the MiX redesign which will affect the funds reporting obligations with regards to:

    1. Lost Member Reporting
    2. Unclaimed Super Money
    3. Member Contribution Statements (MCS)

    The MCS redesign has an element of real time reporting which is what SuperTICK v3 is starting to provide. Mandating opened and closed accounts in SuperTICK v3 is the first step towards this ‘mix design’. SuperTICK v3 will be re-badged and have more enhancements as the MIX Service.

    The reason this change has been brought forward to January 2017 is to support changes to transact at the Unique Superannuation Identifier (USI) level which will generate more transactions from the ATO.

    Currently up to 20% of transactions involve funds advising the ATO of closed accounts. If the ATO was advised in real-time of the closing of a client’s account it would reduce this traffic. For this reason, SuperTick V3, reporting of open & closed accounts will be mandatory from January 2017.

    A complete set of scenarios to map out when an account is ‘closed’ is available on the Software developers homepage and product register (softwaredevelopers.ato.gov.au (commonly known as SIPO)). .

    The use of SuperTICK falls under the Superannuation Industry (Supervision) Act 1993. There are proposed changes to legislation to have the obligation to report via SuperTICKv3 align with the Member Contribution Statements reporting obligation which falls under the Tax Administration Act (1953). This legislative instrument change will occur over the coming months.

    Discussion

    Tracie advised that the Tax Office is after input, ideas on how to improve efficiencies or derive information. We are looking at sequencing and timing. When we say ‘real time’ what does this actually mean as batch processing may be necessary? Currently, this is 7 days, but we’d like to hear what works best for funds.

    George Strilakos raised some questions in regard to applying these scenarios to Defined Benefit Funds. Tracie acknowledged that the scenarios often didn’t fit neatly for DBF’s and there will be further consideration and information about this category.

    Sue Pearce questioned how the reporting of a pension account would be reflected on ATO online and Tracie advised it will be an ‘open’ account. For this reason, the ATO will decide whether information received between v3 and the MiX Service in regard to pension accounts needs to be notified.

    Heidi Stewart asked how the Tax Office will cater for unmatched and Tracie confirmed that if it is unmatched the fund is not required to do anything. There will be TFN response on a ‘closed’ account.

    Sue Pearce asked whether the Tax Office would require retrospective reporting of all opened and closed accounts - the ATO will confirm this with funds.

    Action item: Sue Pearce suggested that information about pension accounts be included in the next iteration of opened and closed account scenarios.

    8. Lost Member Reporting (changes to LMR & re-report) presented by Anna Pace

    Members were provided with an update on changes to Lost Member Reporting (LMR) & re-report.

    1. Current report due 31 May 2016 is a full report. All current lost (L) and inactive (I) members with a balance of greater than $4000 held by the fund as at 31 December 2015 is to be reported.
    2. 31 October 2016 is usual LMS reporting (any proposed legislative change does not impact on this reporting)
    3. Reporting due by 30 April 2017 – there may be a need to report LMS (if the proposed legislation is not passed by 31 December 2016). This report will then require a new definition for “lost un-contactable’ (effective 1 July 2016) as this impacts balances as at 31 December 2016, which at this stage is to be reported in 30 April 2017.
    4. The update to the protocol for the lost and uncontactable changes was distributed to the group. An electronic version is to be issued with the minutes of this meeting and funds are able to provide feedback on this draft version before it is published (refer attachments).

    Members were advised that so far we have 50% lodgement and are expecting 260 funds to re-report.

    Our quality checking has revealed that a high number of reports being submitted are incremental reports rather than a complete re-report. The ATO is providing feedback to individual funds where this is the case.

    Discussion

    Kelly Kerr asked if it would help if the funds / administrators advise the Tax Office of when they intended to lodge the report and was advised this would be very helpful and notification should be made to the CRT mailbox. This advice changed after the issuing of a CRT alert 013_2016 LMR Re-report issued on 26 May 2016 requesting funds provide this information, however providing a different mailbox for the information to be sent.

    Funds were advised they should prepare for April 2017 reporting.

    Kelly Kerr stated this was not a good outcome for the funds and would result in a considerable cost to the funds. Sue Pearce reinforced Kelly’s comment and asked if the Tax Office could use Commissioner’s Discretion in order to circumvent this reporting.

    George Strilakos advised that they were lobbying hard to get inactive accounts with insurance excluded and requested the Tax Office consider this. It was advised that industry (in general) had lobbied hard for this exclusion and government was very clear that this will not be changed. Kelly Kerr advised that a permanent exclusion could be applied in these instances.

    Action Item: Funds to email CAS-LMR&USM Product Team mailbox to advise when they intend to lodge their LMR.

    Action item: Shaun Ferabend to find out when the re-report results would be available to the funds.

    Action item: Funds to provide feedback on the draft protocol for the lost and uncontactable changes. Feedback to be sent to the SASG mailbox by cob 29 July 2016

    9. Reuniting & CAS Superannuation Product updated presented by Shaun Ferabend and Louie Markovski

    9.1 DIV 293 multiple deferred debt accounts

    Members were advised that the ATO had a meeting on 10 March 2016 with a number of funds to discuss and understand how Funds managed their Defined Benefit Interest (DBI) accounts for Div 293 purposes. There was broad agreement that funds will work with ATO to clean up existing multiple deferred debt accounts where only one account should exist.

    Members were advised that the ATO will proceed to resolve the issue of an individual’s multiple Division 293 deferred debt account now rather than later. The ATO will seek confirmation from funds as to whether the DBI for the individual is represented in more than one deferred debt account within the ATO.

    If the answer is yes, the ATO will undertake a clean-up of an individual’s multiple Div 293 deferred debt accounts and amalgamate all assessment/transaction account details into one deferred debt account - this will normally be the account with the latest assessments/transactions. This will ensure correct individual liability being raised upon lodgement of an EBN by funds.

    The ATO is in receipt of approximately 20 EBN’s where individuals have been identified with a single DBI and hold multiple deferred debt accounts. These accounts will be resolved as a priority, prior to commencing amalgamation work on some 300 other multiple deferred debt accounts.

    9.2 Surcharge Assessment run

    Members were advised that the bi-annual surcharge assessment run has been completed with assessments and correspondence issuing on 16 May (electronic files were sent to funds a little before this time).

    With the significant decline of assessments issuing each year, the ATO is continuing to explore opportunities to review the administration of Surcharge moving forward. Even with the decline in assessments issuing there is significant reverse workflow that generates from each assessment run for both superfunds and the ATO. The operating costs of Surcharge for funds and ATO are not proportionate to the net revenue generated by Surcharge assessments. Surcharge processing is out of pattern with Data Standards and will continue to operate on an exception processing basis.

    Currently, the ATO is consulting with legal experts and Treasury, exploring opportunities to lessen the impacts of Surcharge administration on Funds and the ATO.

    9.3 Online Service summary (myGov, e-tax and myTax) and Reuniting

    Members were provided with the following update:

    Online Services summary

    Electronic Portability Forms 2015/16 (as at 30thApril)

    • 461,037 (384,840 for the same period last year)
    • $2.185b ($1.67b for the same period last year)
      • myGov currently has over 4.5m active links to the ATO
      • There were over 2.99m e-tax & myTax returns completed during tax time 2015
      • E-Tax is no longer available as of Tax time 2016.
      • myTax is expanding this year and we are expecting more individuals to use it, this will lead to a continuation in the uptake of super consolidation online (EPFs).
      • myTax has been designed to be tailored to the individual, therefore will mention multiple super accounts and in addition to this a reminder about super will appear at the end of the myTax lodgement process.
       

    Reuniting

    Members were advised that no reuniting campaigns were occurring at the moment. Super business line is developing a new strategy tailoring their campaigns to particular clients:

    • Indigenous
    • Retired
    • Overseas

    The issuing of USM proactive payments recommenced in March. Approximately 108,000 payments have issued worth $15.6m.The multiple fund campaign resulted in approximately 337, 000 individuals being contacted. Emails were sent to individuals that were on myGov with 3 or more multiple accounts.

    Members were advised the Small Business Clearing House will be transitioning to the Tax office in a phased approach.

    Members were advised that there is an in principle agreement (subject to legislative change) in relation to the management of compassionate early release of the superannuation benefits program currently administered by DHS and transitioning to the Tax Office over the coming 12 months.

    Action item: SASG to seek expression of interest from members to discuss the current process.

    10. SASG - Fit for Purpose? Presented by Cathy Cox

    The intent of the SASG quarterly meetings is to provide opportunities for the ATO and industry to share administrative processes and identify better ways to do things that will enhance the client experience. Additionally, the meetings are a forum for the discussion of issues and legislation impacting the superannuation system.

    Members were advised that the purpose of this agenda item is to review the intent of the quarterly SASG meetings and determine if any changes would enhance the client experience, whether that be adjusting the intent or the process we follow to achieve that intent.

    Industry provided the following feedback:

    1. Things are where they should be and we’re in a much better space now than 8 years ago.
    2. The opportunity to co-design and build is great.
    3. They appreciate the forum style discussion opportunities on the various topics.
    4. The ATO is very forthcoming in assisting industry.
    5. Meetings are driven by the agenda rather than the intent of the SASG.
    6. Providing the agenda and any attachments/handouts earlier would rectify point 5 and will allow for more considered discussion and questions during the meeting.
    7. Establish categories to describe the agenda item e.g. informational, for discussion/consultation
    8. There are concerns with regards to the Superannuation Client Relationship Team in terms of the service provided. Members reported:
      1. Emails not being responded to & as phone numbers for members of the CRT are not provided to industry it is difficult to follow-up. This results in extra emails being sent or in some cases emails being sent to other parts of the ATO (e.g. Super compliance) which creates re-work and confusion
      2. Members discussed several issues of cases not being resolved, one dated back to February and another was to do with GIC remissions not being actioned.
       
    9. A centralised repository for important documents would be appreciated and useful. Currently SBR, ATO.GOV & SIPO all have different information. Consideration needs to be given to the development of a BLOG.
    10. If an agenda item is merely informational, this could be included in the meeting documents to read, but does not necessarily need to be discussed within the SASG forum and this would free up time for discussion / consultation.

    Action Item: Attachments/documents etc. to be emailed to members prior to the SASG meeting; agenda to be distributed earlier.

    Action Item: The next meeting agenda is to include categories for each agenda item.

    Action item: Mark Barnett to continue to investigate ways that information can be provided from one centralised point. A group need to be set up to discuss and assist with co-design. This needs to be highlighted as a future agenda item for this forum to explore the possibilities in greater detail.

    Action item: Tracie Crowden to attend the forum again to provide additional updates.

    Action item: Louise Elliot & Shaun Ferabend to review possibility of a centralised repository for important documents and the development of a blog.

    11. Other Business

    11.1 Updating supplier details

    Supplier details are updating in ICP but are not updating consistently in legacy systems - QSG & Surcharge. Funds have to do lots of administration on the platform.

    11.2 Superannuation Guarantee remission cases

    Concerns with regards to CRT actions relating to GIC remission requests were raised.

    Action Item: The ATO undertook to review who the CRT will escalate GIC remission requests to and the responses provided by CRT operatives in relation to these requests.

    11.3 Unclaimed Super Money protocol document

    Distribution of the USM protocol document was requested.

    Action Item: Anna Pace will send this out within the next three months.

    11.4 Proactive Eligible Rollover Fund (ERF) consolidation

    The following information is available under the new legislation section on our website (published 01 June 2016) regarding the new ERF measure which received assent on 9 May 2016.

    This change proposes to enable the licensee of an ERF to reunite ERF balances with an active account in another registrable superannuation entity, without consent of the member.

    Legislation for this change was contained in the Treasury Laws Amendment (2016 Measures No.1) Regulation 2016. The Regulation was registered on 9 May 2016 and it commenced on 10 May 2016.

    11.5 $500,000.00 lifetime cap for non-concessional contributions

    Members provided feedback that clients had been receiving conflicting information from ATO call centres.

    ATO confirmed that scripting for call centre operatives had been updated on Monday and the ATO can provide non-concessional contribution balance information from 2007 to 30 June 2015 but clients may need to contact their fund/or advisor to get up to date information.

    11.6 Version 2 of MIX.

    Members were advised that version 2 is expected to be finalised by June 2016.

    11.7 Special budget meeting.

    Cathy Cox suggested that a smaller ‘special’ meeting will be held after the election to discuss the budget.

    Action item: Invitations to be issued and meeting scheduled.

    12. Close

    In closing Cathy Cox, thanked members for their contribution, mentioning in particular the contributions of Ann Dixon and Kelly Kerr who have resigned as members from the SASG.

    The next meeting is proposed for Wednesday 7 September 2016.

    Action Items

    Item number

    Agenda reference

    Action required

    1

    4

    Members are invited to join the rollover implementation group if they are interested. Notifications to be made to Annette Thurbon.

    2

    5

    Members to provide Tracie Crowden feedback with regards to the action they take with a business to business rollover where there is a discrepancy.

    3

    6

    A link to the STP Consultation Plan will be emailed to members when it is published.

    4

    6

    Copy of STP presentation to issue to members (completed – copy of presentation emailed 7 June 2016).

    5

    6

    John Shepherd to be invited to the next quarterly SASG meeting. (completed - John will be invited)

    6

    7

    Tracie Crowden to review request for pension accounts be included in the next iteration of opened and closed account scenarios.

    7

    8

    Funds to email CAS-LMR&USM Product Team mailbox to advise when they intend to lodge their LMR.

    8

    8

    Shaun Ferabend to find out when the re-report results would be available to the funds. (completed: post 25 May 2016 the ATO has processed the LMR files and all OLRs have since issued)

    9

    8

    Funds to provide feedback on the draft protocol for the lost and uncontactable changes. Feedback to be sent to the SASG mailbox by cob 29 July 2016

    10

    9

    SASG to seek expression of interest from members to discuss the in-principle agreement for the transition of management of the compassionate early release from DHS to the ATO. (completed – expression of interest email sent to members on 30 May 2016)

    11

    10

    Attachments/documents etc. to be emailed to members prior to the SASG meeting.

    Agenda to be distributed earlier.

    12

    10

    The next meeting agenda is to include categories for each agenda item.

    13

    10

    Mark Barnett to continue to investigate ways that information can be provided from one centralised point. A group needs to be set up to discuss and assist with co-design. This needs to be highlighted as a future agenda item for this forum to explore the possibilities in greater detail.

    14

    10

    Tracie Crowden to attend the forum again to provide additional updates. (completed - Tracie will be invited)

    15

    10

    Louise Elliot & Shaun Ferabend to review possibility of a centralised repository for important documents and the development of a blog.

    16

    11

    The ATO undertook to review who the CRT will escalate GIC remission requests to and the responses provided by CRT operatives in relation to these requests.

    17

    11

    Anna Pace will send out the Unclaimed Super Money protocol document within the next three months

    18

    11

    Link for 10 May legislative changes relating to proactive payments to be included in the minutes. (completed - see 11.4)

    19

    11

    Invitations to be issued and meeting scheduled for a smaller ‘special’ meeting will be held after the election to discuss the budget. (completed - placeholder invite issued)

      Last modified: 15 Jul 2016QC 49639