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  • CRT Alert 086/2018

    6 December 2018

    Transfer balance cap: Commissioners commutation authorities

    In response to your feedback, we are changing the address that we use to send the Commissioners commutation authority. Currently we use your client level, or ABN address in our systems, but will be using your superannuation postal address, or if you have registered it with us, your supplier address.

    Reporting issues

    We are continuing to see a number of fund reporting issues occurring in relation to commutation authorities. These are creating reverse workflow for funds, the ATO and potentially creating adverse outcomes for you and your members.

    Funds are reminded:

    • Our commutation authority does not authorise you to commute your member’s income stream after the due date.
    • You must comply with the commutation authority by the due date, even if we have issued a commutation authority for a small amount unless:
      • the commutation authority has been issued in relation to a capped defined benefit income stream
      • the member is deceased.
    • You must report your response to the commutation authority, even if:
      • you are not able to commute the full amount set out in the commutation authority (for example there are insufficient assets supporting the income stream to allow you to do so)
      • you are not commuting an amount because it relates to a capped defined benefit income stream or the member is deceased.
    • If you are unable to commute any amount because we have issued a commutation authority in relation to an account that is closed, you should report that you have partially complied with the commutation (a CC2 event), and amount of nil and that the account is closed.
    • Member-initiated commutations that occurred before the issue date of the commutation authority and were not reported to us should not be reported to us as a CC event (as they were not made in response to the commutation authority). These should be reported to us as a member commutation in a timely manner, so we can amend or revoke the commutation authority.

    If there are issues with your reporting, to resolve them we will contact you by phone using the contact we have on your TBAR. By reviewing the contact details you have previously provided, this will ensure quick resolution of commutation authority reporting errors which can help prevent the issue escalating to compliance matter.

    Commutation authority webinar

    To help you understand the commutation authority process, your reporting obligations and how you can support your members we will be running a webinar in late January.

    Further details including how to register will be provided shortly via Super News

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      Last modified: 07 Dec 2018QC 57578