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  • Superannuation Communique April 2017

    6 April 2017

    Keeping your members up to date on super changes

    From April to June, we will be communicating with your members who may be affected by the super changes starting 1 July 2017. Your members may receive a letter, email or SMS from us outlining key changes to their super.

    We may contact members who:

    • have met or are close to meeting their transfer balance cap
    • are under 25 years old and receiving a death benefit income stream
    • have been identified as being in year one or year two of bring forward arrangements and may have their cap decreased
    • are in salary sacrifice arrangements
    • have been identified as reaching their total super balance threshold and need to be advised about the implications of making non-concessional contributions
    • are in receipt of income from a defined benefit income stream and need to be made aware of the transfer balance cap
    • have been contributing greater than $25,000 in concession contributions, and need to be advised of the threshold change
    • have been identified as having a total superannuation balance greater than $1.25 million and need to be advised of the impact of the non-concessional contributions caps.

    This communication from us may mean you receive more enquires from your members. You should encourage your members to stay up to date on the super changes and how they may be affected. They can do this by visiting ato.gov.au or following us on FacebookExternal Link or TwitterExternal Link.

    SuperTICK3 now in use

    The due date for implementing SuperTICK3 was 31 March 2017. Funds unable to upgrade to version 3 by this date should have contacted us via email at SuperStreamStandards@ato.gov.au so we can formally reply with details of alternative arrangements.

    While SuperTICK3 usage has increased, its performance hasn't degraded.

    We are making final changes to an updated version of the SuperTICK user guide, which is available on the ATO website. It will soon be available on the SuperStream Readiness and Implementation 'Let's Talk' pageExternal Link also.

    For information about availability, performance and planned outages for SuperTICK3 and other superannuation services – check the Superannuation Dashboard.

    SuperMatch2 performance and SuperMatch decommissioning

    Update: We advised you in May 2017 that SuperMatch ECI would be decommissioned mid-2017. So far 95% of large super funds are using SuperMatch 2, making way for us to decommission SuperMatch ECI on 31 August 2017. We will work with the remaining 5% of large funds to ensure they are using SuperMatch 2 by 31 August 2017.

    We recently provided advice that we would delay decommissioning the SuperMatch ECI service from November 2016 until April 2017. This was in response to slow response times experienced by SuperMatch2 users. Improvements to the SBR2 platform (which hosts the SuperMatch2 service), will be progressively implemented from April 2017. This will enhance the performance of SuperMatch2 in line with industry expectations.

    We encourage you to adopt the SuperMatch2 service to take advantage of its benefits, including:

    • no need to sign a paper agreement – use of the service signifies your acceptance of the terms and conditions
    • digital response messaging instead of a bulk CSV file
    • the ability to process single and bulk requests.

    If you have not already moved to the SuperMatch2 service, please contact us for assistance.

    Contributions v2 readiness and testing

    Software developers are testing their implementations of the contribution standard v2 with gateways.

    Outcomes from this testing will help inform and further refine our testing schedule. We will publish the final version of this test schedule soon on the software developers’ homepageExternal Link.

    If you haven’t provided us with details of your preferred test dates, please contact us with those details as soon as possible.

    New SuperStream readiness and implementation page

    The new SuperStream readiness and implementationExternal Link page is now live on the Let’s Talk Superannuation CommunityExternal Link.

    This resource will improve communication about SuperStream testing and implementation, including the contribution standard v2.

    The new page will:

    • allow registered Let’s Talk users to subscribe for update alerts
    • contain an FAQs tab for raising queries about testing (the SuperStream Standards mailbox can also be used for this purpose)
    • cover several SuperStream implementations – e.g. rollovers, contributions and SuperTICK3
    • include links to  
      • key dates
      • archived news
      • quick links
      • supporting documentation (e.g. for testing, production, and cutover)
      • key contacts
      • a subscription function.
       

    Division 293 tax – End benefit notice

    From 1 July 2017, super providers won't be required to calculate an end benefit cap if a member does not have an outstanding amount on their Division 293 tax debt account at the time the benefit becomes payable.

    We are developing forms to support these changes.

    You can email requests to confirm whether a member has an outstanding amount on their Division 293 tax debt account to SuperCRT@ato.gov.au – using the subject line ‘MBR-293’.

    We will respond to confirm whether a Division 293 tax debt account exists. However, this advice won't include the outstanding amount.

    If a Division 293 tax debt account exists at the date a member’s benefit became payable, you will need to calculate and complete the End Benefit Cap amount (label 14) on the End benefit notice – super provider Division 293 tax form.

    We will provide further information about the form requirements before July.

    DASP changes for working holiday makers

    The departing Australia superannuation payment (DASP) tax rate for working holiday makers (WHMs) will increase to 65% for any payments made on or from 1 July 2017. Super funds are encouraged to process existing DASP applications and pay by 30 June 2017. Existing WHM applications paid on or after 1 July 2017 may be subject to the higher tax rate.

    From 1 July 2017, DASP applications will include visa details for WHMs – super funds will require this information to determine the appropriate withholding tax rate.

    During consultation, super funds indicated they would like us to provide them with:

    • visa details from the Department of Immigration and Border Protection – to process outstanding applications received but not processed before 1 July 2017
    • a protocol document to help them apply the new law when processing DASP applications
    • A frequently asked questions (FAQs) document to clarify questions funds have about the new DASP WHM tax rate.

    We are now working to respond to these requests.

    Electronic payment variation advice (ePVA)

    If you receive a rollover via SuperStream and you are unable to accept an individual’s entitlement, you must send an outcome error response message in accordance with the standard – along with the return payment. This enables our system to produce an ePVA form against the members account.

    To avoid processing delays, you need to complete all mandatory fields in the response message.

    Electronic portability form v2

    We will deploy version 2 of the electronic portability form (EPF) on 29 April 2017. The effective implementation date for super funds is 1 May 2017.

    Support for EPF1 messages will decrease as super industry systems align with v2 of the message implementation guides (MIGs).

    For enquiries, email SuperStreamStandards@ato.gov.au.

    Decommissioning the super guarantee legacy system

    We are making changes to our super guarantee (SG) processing systems. Since 2014 we have used two systems for processing SG payments – our legacy system and integrated core processing (ICP).

    In recent months we have been working to finalise all processing in our legacy system so it can be decommissioned. The decommissioning of the legacy system will benefit funds in several ways. For example, you will only have to reconcile one SG payment run, and you will receive notices and statements of account from one system instead of two. We will also stop issuing cheques from our legacy system. The last runs are scheduled for the weeks starting:

    • Monday 3 April
    • Monday 24 April.

    We are now reviewing accounts with credit balances and will contact you to verify credit transactions on SG remittance accounts. We will provide transaction lists to help you with the verification process. We’ll also make contact if we have issued cheques that haven’t been banked.

    You can help avoid delays by processing super payment variation advices (PVAs) as soon as possible to statewhen you cannot accept payments from us for members or former members. PVAs need to be returned within 35 days of issue. Cheques also need to be banked in a timely manner.

    Monthly super remittance and recovery processing schedule

    The ATO super processing schedules for April and May 2017 are outlined in Table 1 and Table 2 below.

    Table 1 – April 2017 super processing schedule

    April

    Week commencing

    Low income superannuation contribution (LISC) recovery

    Monday 03 April

    Super guarantee remittance advice (Legacy)

    Monday 03 April

    Unclaimed super money (USM) remittance

    Monday 10 April

    Co-contributions remittance

    Monday 10 April

    Unclaimed super money (USM) recovery

    Monday 17 April

    Unclaimed super money (USM) remittance

    Monday 24 April

    Superannuation holding account special account (SHAsa) remittance advice

    Monday 24 April

    Super guarantee remittance advice (Legacy)

    Monday 24 April

    Low income superannuation contribution (LISC) remittance advice

    Monday 24 April

    Table 2 – May 2017 super processing schedule

    May

    Week commencing

    Super guarantee recovery notice (ICP)

    Monday 01 May

    Super guarantee remittance advice (ICP)

    Monday 01 May

    Unclaimed super money (USM) remittance

    Monday 01 May

    Co-contributions recovery

    Monday 01 May

    Low income superannuation contribution (LISC) recovery

    Monday 08 May

    First home saver account (FHSA) remittance advice

    Monday 08 May

    Co-contributions remittance

    Monday 08 May

    Unclaimed super money (USM) recovery

    Monday 15 May

    Unclaimed super money (USM) remittance

    Monday 15 May

    Super guarantee recovery notice (ICP)

    Monday 15 May

    Super guarantee remittance advice (ICP)

    Monday 15 May

    Superannuation holding account special account (SHAsa) remittance advice

    Monday 22 May

    Low income superannuation contribution (LISC) remittance advice

    Monday 22 May

    Unclaimed super money (USM) remittance

    Monday 29 May

    Co-contributions recovery

    Monday 29 May

      Last modified: 31 Aug 2017QC 51792