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  • CRT Alert 052/2019

    Protecting Your Super – proactive consolidation and allocation to member accounts

    As part of the Protecting Your Super (PYS) measures, the ATO will begin proactively consolidating inactive low-balance accounts and ATO-held unclaimed super money (USM) with interest to an individual’s active accounts from 1 November 2019.

    When this starts, there will be higher volumes of transactions.

    We've had feedback from some funds that the high volume of USM payments being received may affect their ability to allocate the amount to a member’s account within three days as required by regulation 6.34D of the Superannuation Industry (Supervision) Regulations 1994.

    Given the exceptional nature of these circumstances, the ATO and APRA jointly support the application of APRA’s SuperStream FAQ 8 during the first period of proactive consolidation from 1 November to 31 December 2019.

    That is, where the registrable superannuation entity (RSE) licensee can demonstrate that despite taking every reasonable action, non-compliance was unavoidable, APRA’s view is that the prospect of action against an RSE licensee would be remote.

    The ATO will update its Protecting Your Super FAQ 3 (Proactive Consolidation) on Let’s Talk to reflect this view.

    To assist in timely processing of the increased volumes we will be undertaking additional USM aggregation runs throughout November.

    The ATO will be completing USM aggregation runs on the dates below:

    • Friday 1 November
    • Thursday 7 November
    • Tuesday 12 November
    • Thursday 14 November
    • Thursday 21 November
    • Tuesday 26 November
    • Thursday 28 November

    Funds will then receive the proactively consolidated amounts as per normal USM processing and this will be reflected in the super processing schedule shortly.

    We would like to acknowledge the high level of assistance we have received from funds in implementing the Protecting Your Super changes.

    See also:

      Last modified: 22 Oct 2019QC 60443