Show download pdf controls
  • Superannuation Industry Stewardship Group key kessages 28 February 2017

    The Superannuation Industry Stewardship Group (SISG) met in Melbourne on 28 February 2017.

    Budget New Measures implementation

    A discussion on the implementation of the government’s budget measures was held.

    The ATO is actively working with industry to resolve a number of issues including:

    • administrative arrangements around TRIS and reporting requirements
    • defined benefit schemes and the withdrawal benefits from certain CGT relief funds

    It was noted the ATO has established a number of consultation forums to support industry groups to work through issues and any questions stakeholders have in relation to the implementation of the new measures.

    There are also a number of other communication and consultation initiatives the ATO is working on to complement existing tools and resources, including:

    • Working towards finalising the LCG’s by the end of March.
    • Preparation of advice and guidance notes to support the Law Companion Guidelines.
    • ATO Open Forums and a series of Webinars focussing on the new measures.
    • Refresh of material available on together with correspondence review which will look to align issuing correspondence based on an individual’s life events. A number of solutions are being user tested and currently considering the practicalities around these. The ATO will seek opportunities to partner with industry to get these messages out.
    • There is also work being done to increase visibility for individuals to interact with their account and view super balances in real-time.
    • Senior ATO staff available to attend webinars / events run by industry.

    Members indicated they were happy with the information being shared and that things were on track for implementation of the new measures.

    Unclaimed super

    Glen McCrea from ASFA led a conversation on the management of unclaimed super, including proactive payment options.

    There are renewed concerns across industry on the increased volume of account erosion and the impacts on retirement savings, as well as impacts on insurance.

    A number of options to help mitigate the erosion of accounts were discussed, including:

    • allowing balances to be sent to another active fund rather than the ATO
    • allowing the ATO to proactively roll-over balances to an active account

    Consideration was given to the ATO’s data matching capability and the impact of the increase in information being provided to funds through SuperStream to prevent it becoming unclaimed in the first place.

    Departing Australian superannuation payments

    Dick Grozier from ACCI led a conversation around the changes to the marginal tax rate for superannuation for working holiday makers. Cathy Hummel from the ATO joined the conversation.

    Members discussed the impact of the changes and expressed some concerns that if legislation goes ahead, it may result in a higher volume of individuals not claiming their superannuation.

    There are still some details being worked through, particularly in relation to ensuring Funds receive the relevant information to assist them to apply the correct tax rate.

    The ATO will be updating the departing Australian superannuation payment online to assist individuals understand what type of visa they hold and associated taxation implications.

    It was noted consultation will commence to discuss the proposal in more detail over the coming weeks.

    Superannuation guarantee compliance

    James O’Halloran from the ATO led a conversation on the causes and treatments of SG non-compliance within the superannuation industry.

    The ATO’s submission to the Senate Economics References Committee on SG non-payment was discussed and members put forward their observations and considerations for improving SG compliance.

    There was discussion around the limitations of the current system and changes in reporting and technology that may assist this going forward. Privacy limitations and discretion were also raised.

    My Retirement

    Jenny Wilkinson from Treasury provided an update on the issues raised in the discussion paper relating to the My Retirement framework.

    The discussion paper relating to the framework for the retirement phase of the superannuation system was released in December and submissions close at the end of April.

    Members discussed a number of different elements associated with the My Retirement framework and the need for clarity between the framework and product to help inform thinking, and the practicalities around implementation.

    While there are still some issues to be worked through, there has been constructive and diverse feedback received. Consultation with industry groups is planned to help better understand the proposal.

    Members acknowledged this is a significant reform package and the need to take time to work through the proposal and build better understanding of rationale and support for the framework.

    Treasury expect to release the exposure draft regulations in relation to income stream products soon for public comment, for finalisation by 1 July.

    Update on insurance

    Glen McCrea from ASFA provided an update on the Insurance working group and status of the work currently underway.

    Glen noted the Parliamentary Joint Committee hearings on life insurance occurring over the coming weeks.

    A number of considerations have been put forward regarding improvements to managing insurance within the super industry, ensuring a balance of industry solutions and government regulations.

    Superannuation program of work across SuperStream, Single Touch Payroll and New measures

    John Shepherd from the ATO provided an update on the outcomes of recent industry engagement and the key principles being considered as part of the superannuation reporting design.

    It was noted that good progress has been made to streamline the provision of the TFN declaration and super choice forms through a pre-fill solution. Further work is underway to identify a solution that can be integrated into the employer commencement software.

    Single touch payroll is undertaking a small business pilot to understand the impacts and benefits and user testing to consider the design of the choice screens.

    Discussion was held around the outcomes of a fund reporting planning consultation session held recently where agreement was reached on the need to move to more real time/event based contribution reporting. Implementation plan will include tactical and strategic solutions, with the aim of minimising re-work.

    CGT rollover relief extension

    David Knox from Mercer led a conversation on the impact of the expiry of the CGT relief relating to fund mergers and preference for the relief to be provided indefinitely.

    Members discussed the practical implications of the current arrangements ceasing 30 June 2017 and the impact on fund mergers currently being negotiated.

    Consideration was given to the challenges with providing ongoing relief and that members best interest is a key driving factor.

    Other business

    Chair, James O’Halloran thanked Tom Garcia for his contribution to the SISG as CEO AIST.

    Agreement from members that future meetings will run from 10:30am – 3:30pm.

    Next Meeting

    Wednesday 24 May 2017 in Sydney.

    Action items

    Action item 20170228-1

    The ATO to provide members with statistics on the unclaimed super money data matching rate.

    Action item 20170228-2

    One pager to be sent to the group showing how changes will operate.




    Australian Taxation Office

    James O’Halloran, Deputy Commissioner, Superannuation (Chair)

    Jason Lucchese, Assistant Commissioner, Superannuation

    Sarah Kimmorley, Senior Director, Superannuation

    Tammie Turner, Superannuation (Secretariat)


    John Shepherd, Assistant Commissioner, Single Touch Payroll (ATO)


    Jenny Wilkinson, Ian Beckett

    Australian Prudential Regulation Authority (APRA)

    Carolyn Morris

    Australian Securities & Investment Commission (ASIC)

    Ged Fitzpatrick

    Australian Chamber of Commerce and Industry (ACCI)

    Dick Grozier

    Australian Institute of Superannuation Trustees (AIST)

    Tom Garcia

    Association of Super Funds Australia (ASFA)

    Glen McCrea

    Chartered Accountants Australia and New Zealand (CAANZ)

    Tony Negline

    Financial Services Council (FSC)

    Blake Briggs

    Financial Planning Association of Australia (FPA)

    Dante De Gori

    Industry Super Australia (ISA)

    Michael Fisher

    Law Council of Australia

    Heather Gray


    David Knox

    SMSF Association (SMSFA)

    Andrea Slattery


    Australian Bankers' Association (ABA)

    Diane Tate

    CPA Australia

    Paul Drum

    Industry Super Australia (ISA)

    David Whiteley

      Last modified: 04 May 2017QC 51929