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  • Super Communique December

    7 December 2017

    In this month's edition:

    Update on the future of fund reporting

    Member Account Transaction Service (MATS)

    Changes to MATS technical documents

    We're updating the MATS technical design to change the structure from multiple transactions to a single transaction type per message.

    After careful consideration and consultation with industry representatives, the Transaction Service Working Group approved the change. We issued CRT Alert 074/2017 on 1 December 2017 to notify you about the decision.

    Previously you could report up to five different transaction or contribution types in a single MATS message. You will now only be able to report one, which will:

    • simplify the back-end processing required to support the design of a single message containing multiple transaction types
    • provide a more streamlined process for cancellations (previously, cancelling a message would cancel all transaction types reported within that message even if you only needed to cancel one).

    These changes will be reflected in the validation rules that are due to be published to the SBR website on 15 March 2018.

    See also:

    Member Account Attribute Service (MAAS)

    MAAS foundation data

    The introduction of event-based reporting means funds will be required to report changes to a member's attributes through MAAS. Where there are no changes, there is no requirement to report. This means that some members or attributes may not be reported or updated for some time.

    As a result, it is important that the initial data used to populate MAAS is accurate and complete. We are working with key industry representatives to develop this foundation data strategy for MAAS. We'll provide you with more information once it becomes available.

    SuperStream – implementation update

    Unclaimed superannuation money (USM)

    USM adjustments and non-lodgment advice

    As discussed in previous CRT Alerts, the process for USM adjustments is changing. From 11 December you'll need to lodge all decrease, transfer or cancellation USM adjustments using a new template.

    You'll also be able to lodge a USM non-lodgment advice using a new template from 11 December.

    The new templates will be published on the adjusting unclaimed super page when they're available. We'll soon update all other USM web content to reflect this new process.

    As advised in CRT Alert 073/2017 on 27 November, you will now be able to lodge the templates only through the business portal.

    Next steps:

    • See adjusting unclaimed super for information about the changes, the templates (which will be published on this page when available) and how to lodge.
    • CRT Alert 073/2017 – USM reporting changes after 30 November – Update 

    USM data messages now arrive closer to payments

    On 9 December 2017 we will implement a change to our systems so that you'll receive SuperStream data messages closer to when you receive the associated payments.

    This change applies to USM remittances only. It does not apply to contributions processing.

    This has been updated in our processing schedule.

    We will monitor the outcomes of this change closely and provide any ongoing updates as necessary.

    Section 20C and USM – Testing and business deployment verification

    Funds started testing their section 20C and USM SuperStream solutions on 23 October. Despite some initial issues, our external vendor testing environment (EVTE) is now stable and working to design. The overall test schedule remains on track.

    Our section 20C and USM business deployment verification (BDV) exercise will start on 29 January. We're working with funds during the testing phase to determine suitable candidates to participate in the BDV exercise. We anticipate between 6 and 8 funds and 3 gateways will participate in BDV (as was the case for Contributions v2), and we expect to finalise the BDV candidate list by mid-December.

    You should tell us when you're ready for cutover by submitting a Fund Production Readiness Checklist. ECI will remain open for those who aren't ready to receive section 20C notices via SuperStream in February.

    The conformance date for USM reporting is 30 April 2018. The vast majority of funds have indicated they will be ready to report USM via SuperStream by this date and we're taking a practical approach with those who are unable to meet the deadline. Talk to us as soon as possible if you need an extension beyond 30 April 2018.

    Next steps:

    Work with us to improve SuperStream

    The SuperStream Continuous Improvement Working Group works to address SuperStream issues and identify potential improvements to the SuperStream network.

    The working group has four key focus areas:

    1. data quality and network integrity
    2. improvements to enabling services and testing
    3. change management
    4. strategic roadmap and emerging technologies

    Currently, the group is consulting with industry on SuperStream data quality – for example, incorrectly constructed initiate rollover error response (IRER) messages. If you have issues like this and would like to have your say, please contact us.

    Next steps:

    TBAR update

    Nil member commutation amounts

    Special rules apply for determining the value of transfer balance debits for capped defined benefit income streams. These are set out in section 294-145 of the Income Tax Assessment Act 1997.

    In some instances, the formula used to calculate the special debit value of a commutation of a capped defined benefit income stream may give a nil value.

    Despite this, you will need to report the nil value and other relevant details of the member commutation (MCO) event to us.

    The specifications and ATO systems are being updated and we anticipate being able to accept the nil value to be reported for an MCO event by 14 December 2017 when mandatory TBAR reporting begins.

    Next step:

    • If you are unable to report a nil value for an MCO event in your initial TBAR report, email SuperConsultation@ato.gov.au before the TBAR 14 December deadline.

    Transfer balance cap ETB determination messages

    From January 2018 we will start sending excess transfer balance (ETB) determinations to your members who have exceeded their transfer balance cap and not rectified the excess.

    Your members will be able to go online through myGov from January and see their transfer balance account, including information you've reported to us. They'll also be able to download this information and email it to their agents and planners.

    Correction to previous advice

    In an article titled 'Information changes to Transfer Balance Account Reporting specification' in the November Communique we featured a sentence that was incorrect. We are updating the message to replace the word 'must' with 'may' to say '…a zero amount may be reported as an accumulation phase value/retirement phase value (APV/RPV)'.

    Next step:

    • Read the November Communique article Information changes to Transfer Balance Account Reporting specification.

    Total superannuation balance information displayed via myGov

    After 9 December your members will be able to see more detailed information about their total superannuation balance via myGov. This data will be based upon information you've provided to us for your members.

    What’s changing?

    • The 'Contributions details' page will be renamed to 'Total superannuation balance'.
    • Information displayed will only include data for the 2016–17 financial year and for each open account will include amounts for:
      • accumulation phase value
      • retirement phase value
      • rollovers
      • reported structured settlements/personal injury.
       
    • We've updated the content in our help function.

    Due to the volume of contributions data being processed, myGov will take up to two weeks to update all client information. Individuals who access this page within the two week period may need to check their total superannuation balance again to confirm the balance after this period.

    You may receive more member enquires than usual during this time.

    See also:

    DASP update

    DASP Online real time visa information

    The departing Australia superannuation payment (DASP) online application system will be improved to enable it to obtain real-time visa information from the Department of Immigration and Border Protection (DIBP) after 9 December 2017.

    In response to your feedback, we're also changing the application view so you can see whether the applicant has held a working holiday maker (WHM) visa and WHM-bridging visa.

    Changes to the DASP application view

    To help you quickly identify whether the applicant held a WHM visa, you'll see one of the following messages on each DASP application.

    1. The DIBP records show that the applicant has never held a Working Holiday Maker (WHM) visa.
    2. The DIBP records show that the applicant held the following Working Holiday Maker (WHM) visas and no other visas with working rights during their time in Australia.
    3. The DIBP records show that the applicant held the following Working Holiday Maker (WHM) visas along with other visas with working rights during their time in Australia.

    Details of WHM and WHM-bridging visa will be shown where the applicant has held a WHM visa.

    This change means we will no longer hold applications for 14 days if they are submitted after 9 December. We'll still hold applications submitted up to 9 December, so you may continue to see visa information entered by applicants (rather than from DIBP) until 22 December 2017.

    Incorrect withholding for DASP

    We've received enquiries from temporary residents about incorrect withholding for their DASP including instances where the DASP WHM rate of 65% is applied when the applicant has never held a WHM visa.

    In many cases, these temporary residents informed us that their super funds advised them to contact the ATO.

    Where the incorrect withholding occurred during the current financial year, you should adjust the withholding amount accordingly. You should only refer members to the ATO when the incorrect withholding took place in a previous financial year.

    See also:

    Streamlining release authorities

    From 1 July 2018 we will streamline the release authority process for excess contributions and Division 293 liabilities. These changes will simplify the process for you and your members.

    We're introducing a range of changes to make the process for release authorities consistent, streamlined and simpler.

    • Determinations and assessments issued to individuals will contain the same information about how to release amounts from their superannuation fund.
    • All elections to release amounts from superannuation will be made to the ATO.
    • Release authorities and statements will always be issued from the ATO to the nominated fund/s.
    • Money released from a member's account will always be paid to the ATO.
    • You must make payments for all release authorities within 10 business days.
    • You must return all release authority statements to the ATO within 10 business days.

    Notifying members

    These changes also mean you will no longer be required to notify your member when you've made the payment in response to a release authority statement. Instead you'll notify the ATO via the release authority statement and we will notify your member of the outcome.

    Release authorities affected by this change

    The changes will apply to the following release authorities:

    • excess concessional contributions
    • excess non-concessional contributions
    • excess non-concessional contributions tax
    • division 293 due and payable
    • division 293 deferred debt.

    You should continue to use the current process until 30 June 2018.

    No-TFN tax offset – IOP calculator removed

    The No-TFN tax offset – Interest on overpayments (IOP) calculator was removed from our website in November 2017.

    Our web analytics indicate this calculator was rarely used and we have web content available to help you calculate the interest on overpaid tax.

    Next steps:

    Webinars

    Constitutionally protected funds – How to complete the member exit statement for members with super surcharge

    As part of our administration of the superannuation contributions surcharge system we have identified a number of issues with member exit statements (MES). We're hosting a webinar to help constitutionally protected funds (CPF) correctly lodge MES to meet their reporting obligations.

    This webinar will help funds who have on ongoing responsibility to lodge surcharge-related information to the year 2050.

    The webinar will include information about:

    • when an MES must be lodged and how to amend or cancel a previous form
    • real-life case studies to assist with some reporting misconceptions.

    When: Monday 11 December 2017 at 1pm (AEDT)

    Where: Online – watch from any desktop or mobile device

    Unable to attend?

    The webinar will be recorded and presentation slides and transcripts will be available after the session.

    Next step:

    Transitioning to event-based reporting (MATS)

    We've worked closely with industry to co-design the event-based reporting framework. This collaboration brought about an update to the approach for the transition period during which you'll cutover to MATS. CRT Alert 70/2017 issued on 13 November provided an update on the strategy for transitioning to MATS.

    This webinar will discuss the transition approach to the new event-based transaction service.

    When: Wednesday 13 December at 2:30pm (AEDT)

    Where: Online – watch from any desktop or mobile device

    Unable to attend?

    The recording and related materials will be available to download soon after the session.

    Next step:

    See also:

    • CRT Alert 70/2017 – Approach to transitional year for event-based reporting 
    • Watch our event-based reporting webinar from June 2017, in which the MATS concept was first presented

    SBSCH webinar recording now available

    The Small Business Superannuation Clearing House (SBSCH) is joining ATO online services in February 2018.

    On 29November we held a webinar for users of this service titled SBSCH joining the Business Portal.

    The webinar covered:

    • why the clearing house is joining our Business Portal in early 2018
    • an overview of the services available in the Business Portal
    • choosing either Manage ABN Connections or AUSkey to access the portal
    • answers to frequently asked questions.

    The recording and transcript of that webinar are now available on atoTV.

    Next steps:

    Searchable CRT Alert archive now online

    In response to your feedback we've created a full archive of CRT Alerts dating back to 2011 on the ATO Legal Database.

    What are Super CRT Alerts?

    Super CRT Alerts notify subscribers of urgent and important issues affecting large super funds. Subscribers receive alerts via email, and all CRT Alerts are available via our services and support page.

    Next steps:

    • Visit the services and support page for APRA-regulated funds to find recent and archived CRT Alerts

    How to search the ATO Legal Database

    To find CRT Alerts on a specific topic:

    • Go to the ATO Legal Database.
    • On the left side navigation menu click the downward-point chevron next to 'Search' and click 'Advanced search'.
    • Type your search term into the 'Exact phrase' box. Combine search terms by clicking the 'Add' button on the right. For example, if you have a query about MCS lodgment in 2015:
      • you can search for the term ‘MCS lodgment’ in the ‘Exact phrase’ search box
      • click on the ‘Add’ button to include the year ‘2015’ in the search, OR
      • you can search ‘2015’ in the ‘These words’ search box
      • include ‘MCS lodgment’ in the ‘Exact phrase’ search box and you'll retrieve the same results from each search.
       

    Note: By searching for only the term ‘MCS lodgment’ in the ‘Exact phrase’ search box you will retrieve all results for every year.

    However, searching for the term ‘MCS lodgement’ in the ‘These words’ search box will retrieve all results from the whole legal database.

    To browse CRT Alerts by year

    • Go to the ATO Legal Database.
    • You'll see folders for each year back to 2011. Click the dropdown arrow to expand each year folder.
    • Scroll through the list and click on your preferred alert.

    Next steps:

    Subscribe:

    Christmas closedown

    This year the ATO will be closed for the festive season from 12.00 midday (local time) on Friday 22 December 2017 until the start of business on Tuesday 2 January 2018.

    • The SBR Service Desk will close at 7pm on Friday 22 December 2017 and open again at 8am Tuesday 2 January 2018.
    • During the shutdown period any enquiries received to SuperCRT@ato.gov.au will be actioned once staff return on Tuesday 2 January 2018.

    Need help?

    Monthly super remittance and recovery processing schedule

    The ATO super processing schedules for December 2017 and January 2018 are outlined below. This reflects the channel, files and payments for each product.

    Table 1 – December 2017 SuperStream

    SuperStream

    Date from

    Co-Contributions Remittance

    Tuesday 05 December

    USM Recovery

    Wednesday 06 December

    USM Remittance

    Friday 08 December

    SG Recovery

    Tuesday 12 December

    SG Remittance

    Tuesday 12 December

    SHAsa Remittance

    Thursday 14 December

    LISC Remittance

    Tuesday 19 December

    Table 2 – December 2017 ECI/paper

    ECI/Paper

    Week beginning

    LISC Recovery

    Monday 04 December

    First Home Saver Account Remittance

    Monday 04 December

    Co-Contributions Remittance

    Monday 04 December

    USM Recovery

    Monday 11 December

    USM Remittance

    Monday 11 December

    SG Recovery

    Monday 11 December

    SG Remittance

    Monday 11 December

    SHAsa Remittance

    Monday 18 December

    LISC Remittance

    Monday 18 December

    Table 3 – January 2017 SuperStream

    SuperStream

    Date from

    Co-Contributions Remittance

    Tuesday 09 January

    USM Remittance

    Wednesday 10 January

    SG Recovery

    Tuesday 16 January

    SG Remittance

    Tuesday 16 January

    SHAsa Remittance

    Thursday 18 January

    LISC Remittance

    Tuesday 23 January

    USM Remittance

    Wednesday 24 January

    Co-Contributions Recovery

    Wednesday 24 January

    LISC Recovery

    Thursday 01 February

    Table 4 – January 2017 ECI/Paper

    ECI/Paper

    Week beginning

    USM Remittance

    Monday 08 January

    Co-Contributions Remittance

    Monday 08 January

    USM Recovery

    Monday 15 January

    SG Recovery

    Monday 15 January

    SG Remittance

    Monday 15 January

    SHAsa Remittance

    Monday 22 January

    LISC Remittance

    Monday 22 January

    USM Remittance

    Monday 22 January

    Co-Contributions Recovery

    Monday 29 January

    LISC Recovery

    Monday 05 February

    Super consultation report

    The tables below summarise scheduled consultation activities for December 2017.

    For a complete picture of all superannuation consultation and engagement activities visit the Let's Talk – Superannuation CommunityExternal Link and click on the Superannuation Consultation Snapshots folder under the Supporting material heading. You can also view consultation snapshots for previous months.

    Send your feedback or questions to SuperConsultation@ato.gov.au.

    Table 5 – December 2017 upcoming events – APRA-regulated fund consultation and SuperStream events

    Date

    APRA-regulated fund consultation or engagement activity

    29 November to 1 December

    ASFA Conference – Sydney

    5 December

    SuperStream Reference Group Telepresence

    6 December

    APRA Fund Communications Reference Group

    6 December

    SuperStream Technical Committee Telepresence

    8 December

    SuperStream Continuous Improvement Working Group telepresence

    14 December

    SuperStream Implementation Working Group

    TBC

    Commence business deployment verification (BDV) exercise with APRA funds for the New USM adjustment processes

    TBC

    Business to Government reporting webinar

    Throughout December

    Engaging with Funds by phone as they provide responses to our RDF early engagement campaign work

    Throughout
    December

    Engagement to advise of changes to release authority processes and products being implemented on 1 July 2018.

    Table 6 – December 2017 – upcoming Single Touch Payroll events

    Date

    Single Touch Payroll consultation or engagement activity

    4 December
    11 December

    Intermediary National Roadshow

    5 December
    6 December

    ATO Open Forum

    5 December
    7 December
    11 December

    Digital Service Provider session

    7 December

    Readiness Working Group

    11 December

    Key Agent Client Seminar

    12 December

    Key Agent Roundtable

    12 December

    Design Authority Forum

    14 December

    Single Touch Payroll Advisory Group

    14 December

    Software Developers Technical Working Group

    15 December

    Single Touch Payroll Design Working Group

      Last modified: 12 Dec 2017QC 54066