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  • Agenda items

    1. Welcome

    Assistant Commissioner Cathy Cox opened the meeting:

    • Welcomed all in attendance including new representatives and guest attendees.
    • Acknowledgment of the traditional owners and custodians of the land.
    • Accepted that no conflicts of interest were advised.
    • Farewell from Cathy Cox and introduction of Robert Drummond - Cathy thanked everyone for the relationships developed and her pleasure to work with such a professional group of people.

    2. Superannuation housing

    2.1 First Home Superannuation Saver Scheme (FHSSS) presented by John George

    Update provided on the implementation of the scheme including

    Legislation for the FHSSS and Downsizing measures are still waiting for debate in the Senate after being passed in the Lower House in mid-October.

    The ATO is well advanced in their preparations to ensure that web-content and ATO telephony staff scripting and skilling will be ready once Royal Assent has occurred

    The smaller housing consultation sub-group (that includes representation from SASG attendees) have continued to meet to assist the ATO in design and implementation of both measures FHSSS measure update:

    • FHSSS application - The ATO will be administering these provisions of the measure. There is no additional reporting or other obligations/impacts on funds other than accepting/processing a new FHSSS release authority.
    • A draft of the FHSSS release authority to the SASG when it is ready to consult on.
    • Sub-group, Individuals are responsible for ensuring they claim the correct deduction in respect of the Personal Superannuation Contribution Deduction (PSCD), and this should not cover any FHSSS contributions released or recontributed back into funds.
    • Individuals claiming FHSSS will need to declare that they don’t intend to claim any further deductions in respect of the released amounts. Individuals that incorrectly claim a PSCD may be liable for false and misleading statement penalties and their deduction will be disallowed. The ATO project team will commence work to emphasise this requirement of individuals in the instructions for the Notice of Intent (NOI) form. It was confirmed that it is the ATO’s responsibility to administer the PSCD and that there are no additional expectations/checks for funds, on the basis that the ATO will use MATS reported data to compare with FHSSS release data.

    Discussion points

    ATO confirmed:

    Where the ATO finds an individual has in fact claimed a PSCD amount on FHSSS contributions, the ATO will not seek to re-claw back the super amounts, but rather penalise the individuals through the false and misleading process on the income tax return for an incorrect deduction.

    2016 Budget measure to remove the 10% requirement, there is current work underway by a separate project team to enhance the associated interactions between individuals, funds and the ATO for the PSCD process.

    The ATO as regulator will provide the single source of truth to assist individuals to determine eligibility and advise them of their responsibilities in respect of the FHSSS.

    Funds may experience an increase in member enquiries, either via phone or by accessing online services to obtain an update of contributions made since the last reporting date and any fees, charges, and insurance implications that may apply.

    Post meeting update

    The ATO confirms that the proportioning rule in section 307-125 of the Income Tax Assessment Act 1997 does not apply to a payment that is required or permitted under Division 131. The proposed FHSSS release authorities form part of this division along with all other types of release authorities, and as such this rule is consistent for other release types of superannuation contribution amounts. This is also outlined in paragraphs 1.156 and 1.28 of the Explanatory Memorandum for this FHSSS measure.

    2.2 Contributing downsizing proceeds into superannuation (Downsizing) presented by Julie Rowland

    Progress update on the implementation of the scheme for Downsizing measure was provided. The ATO has further progressed exploring alternative reporting arrangements following a number of discussions with the smaller housing consultation sub-group and ASFA/ASP. At this stage, there is in-principle support for an alternative MATS On-line portal solution to be established for the purposes of reporting these contributions.

    Discussion points

    Funds stated they will be able to accept these contributions, but many funds are unlikely to be ready to report via MATS until a better sense of the volumes involved have been determined.

    Further ongoing consultations are continuing over the coming weeks with the smaller housing consultation subgroup as well as the SMSF sector.

    ATO‘s guidance and advice on products for this measure would also cover off on ensuring that individuals are aware of the potential impacts on pensions, other DHS benefits etc.

    Action item:

    ATO to provide the documented outcomes from the deliberations of the smaller housing consultation sub-group on measures then sent out to industry.

    3. Illegal early release of superannuation and Id fraud presented by Snezana Laskovski

    Discussion was had on illegal early release of super and Id fraud in the super system.

    Action item  

    ATO to identify where funds go to resolve TFN mismatching and advise funds.

    Investigate and advise what codes funds are to use on emails to CRT for TFN matching or fraud.

    4. SuperStream

    4.1 Section 20c and USM reporting and new adjustment (amendment) process presented by Linda Cheesman

    Update included timeframes, on the progress of the implementation of Section 20C, USM reporting and the new adjustment (amendment process).

    • Process to lodge a USM adjustment is changing from 30 November 2017.
    • Between 30 November and 11 December 2017, funds are asked to suspend lodging USM adjustments to ATO. This will allow us to complete processing of any pre-existing adjustments that were submitted before the new system takes effect.
    • Increases in USMS reported amounts can be reported through a SuperStream transaction (Rollover transaction request)
    • Decreases and cancellations are out of band processes and templates need to be completed
    • Templates will be published within the next few days

    4.2 MAAS and MATS

    • An update was provided to members on the design and progress of the re-design of the MCS. This will incorporate both the Member Account Attribute Service (MAAS) and Member Account Transaction Service (MATS) design work.
    • MAAS – design update
      • Foundation data work; both the capture of missing data and improving the data quality.
       
    • MATS – design update
      • Baseline design and change control process
      • Transitional year and how we migrate from annual reporting to event-based
      • Amendment processes – both MATS and legacy amendments
      • Measuring the effectiveness of the design.
       

    Discussion points

    Funds previously reporting via MCS annually and with the new deployment in April, is putting pressure on funds to transition.

    MCS amendments will remain open for 3 years.

    Action item  

    Clarify the guidance notes for POA.

    5.0 Small Business Superannuation Clearing House (SBSCH) update presented by Debbie Rawlings

    • The transition from the existing SBSCH system to the new SBSCH system will now occur late February 2018 / early March 2018.
    • An additional option for the SBSCH system authentication process is now available
      • Manage ABN connections will be accessed through a user’s MyGov account.
      • Auskey will continue to be an authentication option.
       
    • Communication and on-boarding
      • Phase 2 - current - Business portal promotion phase
      • Target and assist users without Auskey or myGov accounts
       
    • Testing updates are discussed at the SuperStream Implementation working group.

    6.0 Client relationship team service commitments and SASG review presented by Shaun Ferabend

    6.1 Client relationship team service commitments

    • Survey undertaken to receive feedback on CRT performance and updates to Service commitments and mutual expectations.
      • 6 responses received - 84% very satisfied with CRT interactions
      • Several suggested changes being reviewed
      • Feedback advised service commitments were clear and service was very satisfactory, respectful, positive and often faster than service commitment standards.
       

    Action item  

    Review:

    • Template use
    • More detail in subject line
    • MATS and MAAS to be included in Super CRT codes for email.
    • Email to funds confirming new codes for Super CRT emails.

    6.2 SASG Review

    • 7 responses received
      • A number of responses indicating a keenness to continue with many of our current communications
      • Several suggestions put forward for the ATO to start doing - being reviewed and considered
      • Other comments included the SASG being a vital forum for collaboration between the ATO and industry
      • Request for updated ATO web content being identified.
       

    6.3 Client experience survey

    • ATO encourages funds to complete the client experience survey which is sent out monthly for any interactions with the ATO on a superannuation issue the previous month.
      • 10 minutes to complete and anonymous.
      • Provides information on ATO interactions.
       
    • Survey results since August 2017:
      • ATO consistently performing well with interactions - courteous and respectful dealings with clients.
      • Staff are fair, professional, knowledgeable and with integrity when dealing with clients.
      • Some clients feel the quality of service may not be in line with their expectations.
      • Some felt they were not kept up to date with issues, status and delays - these will be explored further as more data is received.
       

    Discussion points

    Suggestion that participation in consultation groups become more available: ATO will consider:

    • Consultation group updates to be included on the ATO website.
    • Forums set up where funds can add and comment on information.
    • Time constraints to complete surveys.
    • CRT Alert includes the survey.

    Is there going to be a TBAR protocol?

    Action item  

    Follow up on suggestions with ATO stakeholders.

    7.0 Improving the client experience for super surcharge presented by Louie Markovski

    • No longer issuing debit assessments.
    • 409 - debit assessment - discontinued.
    • Future design work with IT.
    • Webinar - 13th December at 1.00 om however Louie to review due to fund huge work loads.

    Action items:

    • Review webinar date and advise.
    • Send out names of the people in the consultation group.

    8.0 Other business

    Discussion / questions

    TBAR / MAAS - will SMSF's be moving into this space?

    Funds were advised that it is being considered but not there yet.

    Release authorities - will these still be received in paper format - Changing 1.7.2018 and going through SuperStream.

    Question also asked if there will be a quicker way for funds to communicate with the ATO rather than by mail.

    Action items  

    Updated information on release authorities are to be included at next SASG meeting.

    Agenda item

    Action required

    Who

    What

    When

    2.1B

    ATO to provide copies of discussion records from the smaller group consultation meetings along with the minutes of this SASG meeting

    John George

    John has provided these records as separate attachments for issue to the SASG members with the minutes

    January 2018

    Done

    2.2

    ATO to provide the documented outcomes from the deliberations of the smaller housing consultation sub-group on measures then send out to industry

    Julie Rowland

    SASG secretariat forwarded minutes, design documents and CRT Alert link

    21 December 2017

    Done

    3.0A

    ATO to identify where funds go to resolve TFN mismatching and advise funds

    Loretta Green

    Message to funds to provide contact details via CRT in the first instance

    Include in January monthly communique

    Done

    3.0B

    Investigate and advise what codes funds are to use on emails to CRT for TFN matching or fraud

    Loretta Green

    Reminder to use the codes as per the codes table as these cover the scenario

    Include in January monthly communique

    Done

    4.2

    Clarify the guidance notes for POA

    Linda Cheesman

    Fund reporting protocol documents for MAAS and MATS provision of Information has been published to Let’s Talk on 2/02/2018 Protocol guidance material for MATS and MAAS reporting obligations

    January 2018

    Done

    6.1

    Review:

    More detail in subject line

    Loretta Green/ Cheryl Ballinger

    More information regarding the type of enquiry in the subject line for replies

    CRT considered and made small changes to processes

    Done

    6.3

    Follow up on suggestions with ATO stakeholders

    Apra fund communication refrence group will address this

    Send out names of the people in the consultation group - AFCRG

    Shaun Ferabend/ Loretta Green

    Discussed at the meeting

    Apra fund reference group will address this

    Done

    Names provided at the SASG

    7.0

    Review webinar date and advise

    Louie Markovski

    Surcharge ‘Member Exit Statement (MES) - Reporting webinar moved from 13th to 11th December

    Webinar date was changed to 11 December 2017 and webinar has now been run.

    Done

    8.0

    Updated information on release authorities to be included at next SASG meeting

    Shaun Ferabend

    CRT Alert

    CRT Alert sent December 2017

    Done

    Meeting closed 2.10 pm.

      Last modified: 16 Feb 2018QC 54576