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  • ATO confident that funds are continuing to meet their member reporting obligations

    We've published our annual large super fund industry report summarising the outcomes from the 2017–18 risk differentiation framework (RDF) on super member reporting obligations of large APRA regulated funds. We provided tailored diagnostic reports to the funds in April.

    Diagnostic reports

    The diagnostic report assesses funds' performance in meeting member reporting obligations to the ATO. This is the fifth year we’ve provided the large super fund industry report and a tailored report to each fund. Fund executives have consistently advised us these reports help them decide how and where to invest resources, to continue improving their performance.

    There were transformational changes across the sector in 2018, which will continue to improve the integrity of member reporting and ultimately provide a better client experience. We recognise the industry’s commitment to continuous improvement in this environment of systemic and technological change, and we thank all funds for their efforts.

    The 2018 RDF population

    For 2018, there were 220 funds in the overall RDF population compared with 237 funds in 2017. In total, these funds have 25.8 million members and 1.65 trillion dollars under management.

    RDF industry results

    Each fund was rated using a common set of 12 likelihood indicators and seven consequence indicators. The high level results show us that 99% of funds were rated as having a good standard of reporting, which is the same as last year. Fifty per cent of funds have either maintained or improved their results. And for the fourth year in a row, no funds are classified as higher risk. Overall, eight indicators improved and four indicators declined from 2017.

    Member Account Attribute Service (MAAS) and the Member Account Transaction Service (MATS) - 2018

    We engaged with our industry partners to implement event based reporting via MAAS and the MATS. With the transition to MAAS in September 2018, the 2018 diagnostic report used member lost status data from MAAS (instead of lost member statement LMS data). Other minor changes include:

    • new statistics for MAAS, MATS and transfer balance account report (TBAR) lodgment information
    • SuperTICK statistics were excluded to make way for the MAAS/MATS/TBAR data which we considered more relevant this year
    • the number of lost members was taken from MAAS rather than the lost member register. The value of lost uncontactable and inactive accounts was obtained from the 2018 member contributions statement (MCS)
    • statistics showing employer contributions reported via MATS without an employer Australian business number (ABN).

    Supporting funds in 2018

    Our engagement approach had a strong service focus through our industry and consultative forums, and one-to-one engagements.

    We provided support with:

    • mergers and successor fund transfers (SFT)
    • resolving voluntary disclosures
    • relationship management
    • assurance activities.

    We supported funds undertaking a merger or SFT with guidance and administrative assistance. We're currently working on further improvements to the SFT protocol to assist funds through the member reporting aspects of this event. We also supported funds if they had a change in administrator or IT platforms.

    We encouraged funds to use their RDF results to examine their systems and processes, and make voluntary disclosures of any reporting issues identified. We also continued to work with funds via our client relationship manager network to provide ongoing support and minimise adverse member reporting impacts. We conducted assurance activities including reviews and an information systems risk assessment (ISRA) when funds continued to fall outside benchmarks indicators, or had systemic issues across multiple reporting obligations.

    Future of the APRA fund diagnostic report

    Following the shift from an annual member contributions reporting system to event based reporting, it's imperative we look at different ways to assist funds to meet their obligations. This will include adapting how we communicate a fund's member reporting performance back to them in a timely manner. We'll continue to work with a specific purpose industry co-design group to progress the design of this new report.

    Next steps:

      Last modified: 17 Jul 2019QC 59685