COVID-19 – Early Release of Superannuation Industry working group – AUSTRAC update, security and fraud

Key discussion points

• The ATO talked through the security controls around the Coronavirus Early Release of Super process, the expectations of ATO and funds in the process and a discussion about liability concerns.
• The ATO advised there has been a high response in individuals registering their interest to access the early release of super initiative following the release of advice on Monday 30 March.
• The ATO will provide members with the aggregated number of requests received at the end of every week.
• AUSTRAC talked through the changes to the draft ruleExternal Link following its recent release.
• The intent of the draft rule is to ensure the process for making an early release of super payment is as streamlined as possible and allow quick release of payments to members.
• Industry members recommended head note information be included to make it clearer the ruling is related to the COVID-19 measure and that the ATO administers the applications.
• ATO confirmed applications need to be made by midnight 24 September 2020 with determination process to take longer. The determination and approvals are not subject to this timeframe.
• There is a need to have a shared understanding of the security and fraud controls that are already in place around and within the early release process, and what else is being considered.
• The ATO walked through a number of security controls around the individual interactions with both the ATO and fund, prior to the coronavirus early release of super application process. This included expectations of the ATO and funds in the process including:
  • The requirements and necessary information an individual needs to provide to establish a myGov account.
  • The authentication process in place for the application process either through myGov or completing a phone application direct with the ATO.
  • The fraud controls in place to identify and manage compromised or high risk accounts.
  • Questions were raised around the impacts to the application process where a member has changed their contact details either through their myGov account or with ATO account details. Further consideration is required to consider these impacts.
  • The application form will require a valid Australian BSB in the bank account details.
  • The ATO will undertake post application checks of the data files to identify any further fraud indicators – still confirming what is possible.
  • There is an expectation that funds use existing or reasonable fraud monitoring processes and triggers and follow those up as appropriate. This is expected to be the minority of cases and most applications would be processed without further intervention with the member.
  • The ATO to confirm the channel and process for a fund to refer a non-payment due to an identified issue to the ATO.
   
• In closing the ATO noted that a deferral of the current unclaimed super money reporting and payment due date of 30 April 2020 had been deferred for six months to 31 October. CRT Alert 008/2020 was issued on 3 April 2020 advising funds.

Next Steps:

• ATO and other agencies to consider feedback from industry and document the security controls in place for broader consumption.
• ATO to communicate channel and process for funds to raise issues or notify the ATO of concerns with particular members.