Superanuation Industry Stewardship Group key messages 25 February 2019

Welcome and introduction

Royal Commission and Productivity Commission

David Knox (Senior Partner, Mercer) led a general discussion with members about the implications of the Royal Commission report and Productivity Commission report and then discussed specific recommendations within the reports that relate to the superannuation industry.

Outcome: Members had an opportunity to provide their perspectives and gain an understanding of other members perspectives.

Next steps: Further discussions as the responses to the recommendations are implemented.

Superannuation industry overview

The group reviewed the activities occurring across the superannuation industry into the future by way of reference to the Superannuation Strategic Map. This standing item outlines the key government agency programs of work, regulatory and agency reforms across the next 18 months.

Topics discussed included:

• Super bills before or passed Parliament
• Timelines for implementation
• RG97 consultation

Outcome: Members were informed on the progress and discussed specific events of interest.

Next steps: The strategic map will continue to be updated and time set aside at future meetings to discuss.

ATO update

Sarah Kimmorley (Senior Director, Australian Taxation Office) tabled an update on the status of ATO upcoming changes.

Outcome: Members were informed on the progress of ATO activities.

Next steps: Members to be kept informed of the changes that impact the superannuation industry.

Member update

John Maroney (SMSFA) updated the group on the work that the SMSFA is currently undertaking including advocacy and impact of FASEA as well as an update about the SMSFA conference.

Phil Broderick (TTI) outlined the role of the TTI and the future direction, and advocacy.

Michael Fisher (ISA) outlined the ISA strategic view on the default superannuation system.

Outcome: Members were informed about priorities of other parts of the industry.

Next steps: Member updates will continue at future meetings.

Single Touch Payroll (STP)

John Shepherd (Assistant Commissioner, Australian Taxation Office) updated the group on the progress of STP mentioning that around 95% of employers with 20 or more employees are forecast to be on board by end June 2019. The Bill extending STP to small employers was passed by parliament.

Ian Colhoun (Director, Australian Taxation Office) updated the group on employee commencement services. These services support an employee completing commencement forms either from an employer’s business management software (Service 1) or direct through ATO Online (Service 2). So far 6,000 forms have been lodged through service 2. An industry focus group will convene to discuss potential changes and screen design based on usage.

Outcome: Members were informed on the progress and sought clarification as necessary.

Next steps: Members to be kept informed of the progress of Single Touch Payroll and its impacts on superannuation.

Plans for ATO use of STP and MATS data

Graham Whyte (Assistant Commissioner, Australian Taxation Office) updated the group on the new data coming into the ATO via Single Touch Payroll (STP) and Member Account Transaction Service (MATS) reporting. It allows the ATO to have better visibility of employer superannuation guarantee (SG) transactions and obligations.

• Initially this visibility will allow the ATO to develop a better understanding of data to build upon our client engagement to help employers get things right.
• Over time we will expand our knowledge and use of the data to transform the way non-compliant SG behaviour is identified and treated.

Outcome: Members were informed on the progress and sought clarification as necessary.

Next steps: Members to be kept informed of the progress of the SG compliance approach.

Wrap up and close

David Knox (Senior Partner, Mercer) thanked Dick Grozier for his contribution to the SISG and a number of other ATO forums over the years and farewelled him.

David also thanked John Maroney for his role on the ATO Consultation Steering Group and welcomed Glen McCrea as the SISG representative.

Attendees

Industry and Community Members

Agency and Departmental Members

Guests

Apologies