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  • CRT Alert 004/2019

    15 January 2019

    Transfer balance cap: Commissioner's commutation authorities may have issued to accumulation phase accounts

    We recently updated the transfer balance cap system so that it shows the most recent account information you reported to us via Member Account Attribute Service (MAAS) and Member Account Transaction Service (MATS) before we:

    • issue a default commutation notice (issued with a determination) to an individual
    • issue a commutation authority to a fund.

    We have identified that when the transfer balance cap system draws on MAAS and MATS information it is showing accumulation accounts as well as retirement phase accounts and adding these to the account hierarchy that the transfer balance cap system uses for the default commutation notice and commutation authorities.

    Consequently:

    • there is a small risk we may issue a commutation authority to you in relation to an accumulation phase account
    • we may issue a default commutation notice to your member that includes an accumulation account in the list of funds we will send a commutation authority to if they do not commute the amount set out in the determination in full by the due date.

    Default commutation notices and commutation authorities issued from Friday 14 December 2018 may be impacted. A fix is expected to be deployed on 15 January 2019. We will update you once this has occurred.

    Next steps:

    • If we identify that we have issued a commutation authority to you in relation to an accumulation phase account, we will contact you. To date only one instance has been identified.
    • If you have identified that we have issued you with a commutation authority in relation to an accumulation account, please do not action it. You will need to contact us by emailing SuperCRT@ato.gov.au.
    • If you are contacted by a member who is concerned that we have included an accumulation phase account in the list of funds on the default commutation notice, you should advise the member this is an error and withdrawals from this account will not result in a debit in their transfer balance account. We do not intend to issue a commutation authority to you for this account.

    Commutation authority webinar

    We are running a webinar on 7 February 2019 to help you understand the commutation authority process, your reporting obligations and how you can support your members.

    This webinar will:

    • provide guidance to help you understand the commutation authority process
    • advise you how to report correctly and provide some practical insights on how to avoid reverse workflow and adverse impacts for members.

    Next Steps:

      Last modified: 17 Jan 2019QC 57766