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  • Eligible Rollover Funds and Trustee Voluntary Payments

    The Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020, that facilitates the closure of Eligible Rollover Funds (ERF) and allows super providers to make Trustee Voluntary Payments (TVPs), has passed and received Royal Assent on 22 March 2021.

    Eligible Rollover Funds

    Under the new provisions, ERFs must identify accounts they hold on 1 June 2021.

    The reporting and payment of ERF accounts will be due and payable by:

    • 30 June 2021 - for ERF low balance accounts (less than $6,000).
    • 31 January 2022 - for all other accounts held by ERFs.

    If an account balance decreases or increases after 1 June 2021 it does not change the due date.

    ERFs can commence the voluntary transfer of any amounts to the ATO from 1 June 2021 up until the day the statement and payment is due. The timeframes are a minimum, for example an ERF can choose to pay their over $6,000 accounts to the ATO at any time from 1 June 2021.

    The new provisions also prevent any amounts being transferred into ERFs on or after 1 May 2021.

    Trustee Voluntary Payments

    The new provisions also allow super fund trustees to make TVPs of any amounts they hold for members, former members or non-member spouses to the Commissioner if it is in their best interest.

    The provisions allow the reporting and payment to occur anytime once the provisions commence seven days after Royal Assent. However, the enduring reporting solution for this new category is a new unclaimed super money (USM) code that is being delivered in SuperStream Rollovers version 3 which means for a period funds won't be able to identify their reporting and payments of TVPs to the ATO accurately. Until funds have transitioned to Rollovers version 3, we require an interim reporting solution so the ATO can identify amounts that are reported and paid as TVPs.

    Interim Reporting Solution for TVP

    Following consultation with the Superannuation Administration Group, the following arrangements will be put in place as an interim reporting approach for TVP:

    • Funds will be able to lodge TVPs during a two-week window - the first running from 17 to 28 May 2021.
    • Funds will use USM reason code ‘Q - Small Lost Member Account’ in Rollover version 2 to report TVPs until such time as they have onboarded to Rollover version 3.
    • Funds are required to advise the ATO at least one week before their anticipated reporting date when they will report and their anticipated volumes. Notification of volumes should be emailed to SuperStreamStandards@ato.gov.au mailbox with the subject heading of ‘TVP Lodgment - Estimates’.
    • Once reporting and payment has occurred, Funds are to provide the ATO with the conversation ID of each TVP SuperStream message. The ATO will then undertake the appropriate data conversion in ATO systems. Notification of conversation IDs should be emailed to the SuperStreamStandards@ato.gov.au mailbox with the subject heading of ‘TVP Lodgment - Conversation IDs’.
    • Existing USM effective dates will be used.
    • Funds are not to transfer TVPs in any other period and no other transfers using code ‘Q’ should be performed during the TVP window. This is necessary to ensure the ATO can correctly identify TVPs and correct the classification of these amounts in ATO systems for the integrity of the USM register.

    Where a fund is unable to meet these arrangements due to exceptional circumstances, the ATO should be contacted as soon as possible to discuss further. The fund should ensure that is does not proceed to commence reporting TVPs until they have discussed their situation with the ATO.

    It is important to note that if a fund has onboarded to Rollovers version 3 prior to the TVP window they are not restricted to using the interim solution. Funds can make ad-hoc TVPs on any day using USM reason code ‘V’ as part of the enduring solution.

    We will update our web content to reflect the new provisions and reporting solution.

    If you have any questions or for more information, please contact SuperStreamStandards@ato.gov.au.

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      Last modified: 29 Mar 2021QC 65170