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  • SASG minutes 30 November

    Meeting details

    Venue:

    ATO Office, 52 Goulburn Street, Sydney

    Date:

    Wednesday 30 November 2016

    Start:

    10.00am

    Finish:  

    3.00 pm

    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 wordAing 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 Andrea Cooper

    Financial Synergy

    Ms Ari Gerasimou

    CBA CommInsure

    Ms Heide Stewart

    IOOF

    Ms Jayne Pocock

    Qsuper

    Mr Jun Tang

    OnePath

    Ms Louise Hemar

    Pillar Administration

    Mr Sam Finucan

    Bravura Solutions

    Mr Lex Dransfield

    Commonwealth Superannuation Corporation

    Ms Sue Pearce

    Link Group – AAS

    Ms Kelly Kerr

    BT

    Ms Maria Anislag

    Zurich Australia

    Mr Anthony Steele

    Super SA

    Ms Fiona Galbraith

    ASFA

    Mr DarAren Cox

    SA.GOV.AU

    Ms Amanda Gunn

    Mercer Australia

    Mr George Strilakos

    Unisuper

    Ms Narelle Telfer

    Mercer Australia

    Mr Timothy Coulter

    KPMG

    Mr Tony Bishop

    CBA – Colonial First State

    Mr Matthew Pritchard

    Precision Administration

    Ms Janice Low

    NAB

    Mr Tony Truong

    ANZ

    Ms Kathy Calman

    Perpetual Investments

    ATO Attendees

    Ms Cathy Cox

    Assistant Commissioner, Client Account Services

    Mr Shaun Ferabend

    Director, Client Relationships, Intermediaries & Assurance

    Ms Tracey Hughes

    Secretariat, Superannuation Administration Stakeholders Group

    Mr Jason Lucchese

    Assistant Commissioner, Industry & Government Engagement and Governance, Superannuation

    Mr Mark Burt (teleconference)

    Director , New Measures

    Mr Ty Winmill

    Director, SuperStream program

    Mr Michael Karavas

    Director, Single Touch Payroll

    Ms Louise Elliott

    Director, Superannuation Funds Segment

    Mr John George

    Director, Superannuation Individuals New Measures

    Ms Annette Thurbon

    Director, SuperStream Delivery

    Ms Tracie Crowden

    Assistant Director, SuperStream Program

    Ms Anna Pace

    APRA Fund Client Experience and Fund Reporting

    Mr Adam Reece

    Marketing and Communication, Large Super Funds

    Mr Layoun

    Project Lead, Early Release Super Benefits (ERBS)

    Apologies

    Ms Sharan Panton

    Link Group - GESB

    Ms Rebecca Scott

    Perpetual Investments

    Mr Martin Mikulicin

    BT

    Ms Gemma Lipovski

    Precision Administration

    Ms Tina Cifelli

    AMP

    Ms Mary Gale

    Link Group -Syncsoft

    Mr Ian Roberts

    NAB

    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.
    • All action items resolved from previous meeting.

    2. New Super budget initiatives

    Presented by John George

    2.1 Summary of consultations

    It is now time to focus on practicalities - a revised edition of the Super New Measures Implementation Pathway to be distributed to SASG members to allow for further consultation. Engagement of SASG membership is critical.

    Action item: The Super New Measures Implementation Pathway document to be distributed to the SASG group.

    2.2 Improving the Division 293 experience

    The ATO, together with an external consultant (Neoteny Service Design – NEO), has worked to identify system irritants, issues and opportunities to develop a better experience for Division 293 clients. As part of this process, the ATO will be commencing a first timer strategy for Division 293 clients in November, which will use SMS and emails to notify clients of their first Division 293 assessment, reducing the ‘surprise’ factor. The SMS and email campaign will be supported with new web content. The ATO has also developed an updated cover letter, which includes clearer headings and details of the action an individual needs to make. The new Super Budget initiatives reached royal assent 29 November 2016.

    Discussion Points

    Narelle Telfer Questioned what is the communication when the debt has been paid? Annette Thurbon reiterated this is the starting point for the dialogue. 40% are paid voluntarily, however the funds can't identify this, we are trying to identify an improvements via MiX.

    2.3 Low income superannuation tax offset (LISTO)

    The ATO have been working with Treasury on the LISTO legislation and the associated interplay between LISC and LISTO for benefits that issue during the transitional period (1 July 2017 to 30 June 2019). Based on this confirmation advice from Treasury, the ATO IT build for LISTO will internally recognise the difference between eligibility for LISC and LISTO based on the contributions year. Additionally, our LISTO EST design will then direct and aggregate these benefits into the existing Super Stream Data Standards “taxonomy element name” for LISC. As such, there will not be any need to change the name of this existing LISC field within the Contributions Message Implementation Guide (MIG). To provide clarity to industry, instead, the ATO will change the business definition that sits behind this field (Superannuation Contribution Low Income Amount) as follows:-

    • For financial years 2016–17 and prior, this is the value for the low income superannuation contribution amount during the relevant period; for financial years 2017–18 and onward, this is the value for the low income superannuation tax offset during the relevant period.

    The ATO also confirmed that whilst the LISTO name reflects this benefit as a tax offset, it will still be paid to funds in form of a contribution (identical to the existing LISC payments).

    Discussion points

    John George asked the funds about this pragmatic approach to the ATO’s administration of this measure?  Narelle Telfer stated that the approach is good and appeared to be simple to implement and administer and that was also the general consensus in the room.

    Sue Pearce questioned if it remains as a government contribution and John George responded that it does.

    3. Transfer of Early Release of Superannuation Benefits (ERSB)

    Presented by John George

    John George and Sue Layoun presented this agenda item. As part of the discussions between DHS and the ATO to transition the Small Business Superannuation Clearing House, there has been a separate proposal to consider also transferring the Early Release of Superannuation Benefits (ERSB) under compassionate grounds to the ATO.

    As this is currently only a proposal/suggestion that would require the appropriate approvals and legislative authority, the ATO are undertaking some co-design and consultation to formulate a proposed design if this function was to transfer.  As such, the ATO is currently working with DHS to:

    • establish how it currently works
    • identify Irritants
    • develop User testing (for individuals)
    • implement limited consultation with funds

    The aim of this proposal would be to implement a seamless transition that allows us to address current irritants and make improvements. There are 2 specific design proposals that the ATO want industry feedback on:

    • providing funds with simultaneous details of ERSB approvals for their members (and if so the preferred mechanism for receiving these letters)
    • where members have provided their bank details in their ERSB applications, providing funds with these bank details along with details of approved applications.

    Discussion points

    • Sue Pearce stated she supported the proposal with the approval letters issuing to funds via the Data Transfer Facility (DTF). Ari Gerasimou and Narelle Telfer also voiced agreement.
    • Narelle Telfer stated that the preference is for the FIA details to be made as a mandatory field for the individual. Whilst most funds agreed with this suggestion, the ATO pointed out that these FIA details do not often belong to the actual individual member applicant, and in fact are the FIA details of a third party. Many funds acknowledged that their trust deeds do not allow the funds to pay ERSB amounts to third parties.   
    •  Amanda Gunn questioned if we can have a DTF set up specifically for this and Sue Pearce questioned if a new DTF can be established specifically for early release applications. Heidi Stewart stated she did not see the need for a new DTF, however some discussion then transpired as to whether we could organise sub categories for the funds.
    • There was a question from industry as to whether it is proposed to also transition the “financial hardship” grounds (receipt of Centrelink benefits for 26 weeks) scheme. John George responded that the only proposal being considered by the ATO is the compassionate grounds release and not the “financial hardship” grounds.
    • Heide Stewart questioned if there could be proof of record ownership in the body of the approval letter and John George advised that the assurance would be there via the MyGov authentication process. Sue Pearce stated that they would still be applying their own rules. Ari Gerasimou requested that we confirm in writing that the letter comes from the ATO and we have done the necessary checks, John George advised that the receipt of the letter via the mailbox will be confirmation it is from the Tax Office.
    • Lex Dransfield questioned if there is a limit to how much can be released and was advised that under this proposed transition, the eligibility, thresholds, rules, release amounts, etc will not change.  
    • The ATO promised to keep this forum updated on the progress of this proposal as future developments occur.

    Action item: Shaun Ferabend to confirm how we authenticate via MyGov.

    Action item: Shaun Ferabend to confirm how many DTF accesses a fund can have. Are they limitless or is there a limit to how many can be given, how long would it take and what criteria would the person need to meet to be provided with one and what access would they have?

    4. Proposed changes to the tax on Departing Australia Superannuation Payments (DASP) to working holiday makers

    Presented by Mark Burt

    The new measure to impose 95% tax on DASP made to working holiday makers is expected to take effect on 1 July 2017. The legislation has not yet passed.

    It applies to all super contributions provided some relates to work whilst on a 417 or 462 visa.

    Discussion points

    In relation to the ATO suggestion that Super for working holiday makers be paid direct to the ATO, Heide Stewart questioned what about the ATO taking on the insurance element and Narelle Telfer mentioned if the tax rate was 95% tax the only thing left is the insurance. There was not really 5% left, only insurance related benefits left.

    Amanda Gunn questioned how will the employers know about the different VISA types and was advised that the employers will need to know.

    Action item: Mark Burt asked funds to nominate contact details if they wanted to participate in design.

    5. System Availability and SuperMatch2

    Presented by Ty Winmill

    Ty Winmill advised 2 scheduled outages:

    • 17/12/2016
    • 31/12/2016

    The actual window for the outage has not been decided, however the outages are not as long as some of the system updates have been shelved.

    We are moving to a more 24/7 approach to systems.

    Performance Testing has commenced for SBR2. Heide Stewart mentioned a [problem with single messaging and Ty Winmill advised Heide to contact him directly.

    The turnaround for batch processing regarding SuperTick was discussed. For 5 000 records approx. 28 mins, 50 thousand records approx. 3 hours.

    Discussion points

    Sue Pearce commented on the high build cost due to batch processing, particularly when a fund has built a platform around singular. Ty advised that batch processing was always the intent of SBR

    Heidi Stewart questioned where the system outages were published and was advised they are available on Super Dashboard which has the most up to date information available at time.

    Heide Stewart mentioned that correspondence was received in relation to Superseeker and questioned the discrepancy as funds have been advised to remove all reference to this system. Ty Winmill discussed the campaign to move people to digital and advised the forum not to use the service. He advised the web service was closed this month and the phone service would take longer.

    Action item: Heide Stewart made reference to USMAT on the SBR website and was asked to send the link to Ty Winmill.

    Action item: Heide Stewart to send an example of the Superseeker correspondence being received to the SASG mailbox in order for it to be investigated.

    6. Single Touch Payroll

    Presented by Michael Karavas

    Single Touch Payroll was first presented to the SASG in September 2016 and since then, legislation has been passed and this presentation provided an update about recent consultations, reporting design and key dates and statistics.

    Discussion points

    May Low questioned how we are handling rejections – The ATO is collecting employer to fund messages and to minimise cost we are not collecting return messages.

    General discussion occurred around retail funds with no employer details and how the Tax Office will match. The group was advised the MCS will still be completed and used as a backup.

    Timing concerns were raised with payments from employer to fund – fund processing payment especially when it crosses over in financial years.

    7. SuperStrea Rollover V2 Implementation update

    Presented by Annette Thurbon

    SASG members were advised the cutover for Rollovers V2 release for October 2016 (B2B) and November 2016 (G2B).

    General discussion ensued.

    8. Member information eXchange (MiX) design update

    Presented by Tracie Crowden

    SASG members were provided with an update on the design for the MiX project.

    Specific design issues were raised in relation to:

    • SuperTICKv3 – performance and cutover
    • Lost member reporting

    Discussion

    Tracie Crowden discussed when MiX specifications (MIG) would be issued to industry and industry advised it would be their preference to view the draft.

    Tracie advised MiX will absorb lost reporting. Some discussion ensued around the option to reunite before it becomes lost as a proactive approach.

    Action item: Draft MIG to be prepared by the end of the year.

    9. Improving the superannuation client experience: large fund centralised repository of information presented by Adam Reece

    Adam Reece presented the services and support page on ato.gov.au – the solution to the SASG request for a centralised repository of information. Feedback was requested.

    *Noting feedback can be provided via Let’s TalkExternal Link until late 27 March 2017.

    Funds were advised of the intent to move the CRT alerts and communique to campaign monitor and some discussion ensued regarding this.

    Discussion

    The development of a form for funds to use when contacting CRT was discussed.  The consensus of the group was this would not enhance the client experience and would not provide any added value.  The forum was advised that there was never any intent for funds to complete additional forms.

    Andrea Cooper clarified that any feedback in relation to website changes needed to be sent to the SASG mailbox.

    10. Product update

    Presented by Shaun Ferabend and Anna Pace

    10.1 DASP and ATO online results

    No additional discussion or feedback from members.

    10.2 Div293 – reducing multiple deferred debt accounts for clients

    General discussion ensued.

    10.3 LMR

    Anna Pace asked the forum their opinion on the proposal to defer the lodgment of the Lost Member Statement (LMS), for the reporting periods 1 July 2016 to 30 December 2016 (due on 30 April 2017) onwards until the Member Information Exchange (MIX) reporting obligations commence.

    Discussion

    Amanda Gunn responded that it would be their preference to lodge. Heide Stewart reinforced this opinion and some discussion occurred regarding a diagnostics report.

    Sue Pearce and Kelly Kerr advised they would need to discuss with their trustees and provide a response after that discussion.

    Action item: Sue Pearce questioned the USM indicators of engagement and wanted clarification in regards to if they were interpreting the legislation correctly. Anna Pace is to investigate.

    Action item: Andrea Cooper to forward questions regarding the G2B design / specifications to Annette Thurbon.

    Action item: A tracked change version of the latest ISAT protocol to be sent to Heide Stewart.

    11. Close

    In closing Cathy Cox, thanked members for their contribution and reminded members the next meeting is scheduled for 22 March 2017.

    Action items

    Item number

    Agenda reference

    Action required

    1

    2

    The Super New Measures Implementation Pathway document to be distributed to the SASG group.

    2

    3

    Shaun Ferabend to confirm how we authenticate via MyGov

    3

    3

    Shaun Ferabend to confirm how many DTF accesses a fund can have. Are they limitless or is there a limit to how many can be given, how long would it take and what criteria would the person need to meet to be provided with one and what access would they have.

    4

    4

    Mark Burt asked funds to nominate contact details if they wanted to participate in design.

    5

    5

    Heide Stewart made reference to USMAT on the SBR website and was asked to send the link to Ty Winmill

    6

    5

    Heide Stewart to send an example of the Superseeker correspondence being received to the SASG mailbox in order for it to be investigated.

    7

    8

    Draft MIG to be prepared by the end of year.

    8

    10

    Sue Pearce questioned the USM indicators of engagement and wanted clarification in regards to if they were interpreting the legislation correctly. Ann Pace is to investigate.

    9

    10

    Andrea Cooper to forward questions regarding the G2B design / specifications to Annette Thurbon.

    10

    10

    A tracked change version of the latest ISAT protocol to be sent to Heide Stewart.

      Last modified: 04 Jul 2017QC 52810