• Superannuation Communique February 2016

    Monthly superannuation remittance and recovery processing schedule

    Payment Variation Advice (PVA) paper forms processing

    Departing Australia Superannuation Payment (DASP)

    Tax File Number (TFN) notification

    Surcharge assessment runs for 2016

    Lost Member Report (LMR) re-report 2016

    Release authorities who to pay

    SuperMatch2 is up and running

    Online troubleshooting for businesses and tax practitioners

    Portal outages and Systems maintenance

    Monthly superannuation remittance and recovery processing schedule

    The ATO superannuation processing schedule for February 2016 and March 2016 are outlined below.

    February 2016

    Product

    Correspondence issuing week beginning

    Co-contributions recovery

    Monday, 1 February 2016

    Low Income Superannuation Contribution (LISC) recovery

    Monday, 1 February 2016

    First Home Saver Account (FHSA) remittance advice

    Monday, 8 February 2016

    Co-contributions remittance advice

    Monday, 8 February 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 8 February 2016

    Super Guarantee remittance advice (Legacy)

    Monday, 8 February 2016

    Super Guarantee remittance advice (ICP)

    Monday, 15 February 2016

    Unclaimed Super Monies (USM) recovery

    Monday, 15 February 2016

    Super Guarantee recovery

    Monday, 15 February 2016

    Low Income Superannuation Contribution (LISC) remittance advice

    Monday, 22 February 2016

    Superannuation Holding Account special account (SHAsa) remittance advice

    Monday, 22 February 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 22 February 2016

    Co-contributions recovery

    Monday, 29 February 2016

    March 2016

    Product

    Correspondence issuing week beginning

    Co-contributions remittance advice

    Monday, 7 March 2016

    First Home Saver Account (FHSA) remittance advice

    Monday, 7 March 2016

    Super Guarantee remittance advice (Legacy)

    Monday, 7 March 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 7 March 2016

    Low Income Superannuation Contribution (LISC) recovery

    Monday, 7 March 2016

    Super Guarantee recovery notice (ICP)

    Monday, 14 March 2016

    Super Guarantee remittance advice (ICP)

    Monday, 14 March 2016

    Unclaimed Super Monies (USM) recovery

    Monday, 14 March 2016

    Superannuation Holding Account special account (SHAsa) remittance advice

    Monday, 21 March 2016

    Low Income Superannuation Contribution (LISC) remittance advice

    Monday, 21 March 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 21 March 2016

    Co-contributions recovery

    Monday, 28 March 2016

    Payment Variation Advice (PVA) paper forms processing

    In the monthly communique issued on Monday 21 December 2015 we outlined the importance of utilising the correct Payment Reference Number (PRN) which allows the payment to be allocated to the correct head of revenue.

    In addition, the factors listed below can assist with the processing of PVA paper forms.

    1. Ensure you complete Section F – Super provider payment information of the PVA from the payment slip included in the form. In particular if you are paying by cheque please complete the payment slip at the end of the form, ensuring that you place a cross in the relevant box for the payment type.
    2. The correspondence and payments must match the form. For example if you have 10 PVA forms in total for $1,000 the accompanying payment should be for $1,000. Your covering letter (if included) or form should also match.
    3. Forms that have been previously downloaded and/or pre-filled should not be used.

    If you follow these guidelines, it will ensure that your PVA forms are processed accurately, in a timely manner and the correct outcome is attained for the member/s.

    Departing Australia Superannuation Payment (DASP)

    From January, temporary residents claiming their super using our DASP Online system can enter their bank account details. This will reduce your processing costs and also mean that your members will receive their payment faster.

    Individual members can enter either their Australian financial institution details or their international bank account number. Although we have added these additional fields in the DASP online claim form, we do highlight that not all funds offer to make payments electronically. We also advise members to contact funds to clarify before making these requests and any applicable fees and charges (including currency conversion fees).

    Parallel changes were also made to the paper form application for a Departing Australia superannuation payment (NAT 7204). The updated instructions for this form are available at Applying for a Departing Australia superannuation payment from a super fund or retirement savings account.

    Tax File Number (TFN) notification

    You may have noticed an increase in the volumes of Please Resolve (PR) notifications you have received for this financial year.

    This may be in response to a change that was made to our matching system. In late 2013 we made changes to improve the accuracy of our matching processes for MCS. This has led to some inconsistencies between the notifications provided to you in the 2013 and subsequent 2014 and 2015 financial years. While we have improved our overall matching accuracy for MCS reporting, in some cases the member details that were lodged and incorrectly matched on a 2013 MCS form may not match in subsequent years, although the details in the MCS are identical. A Please Resolve notification will issue if we cannot match the MCS form to a certain level or certainty or if there are multiple potential matches. If you have received a Please Resolve notification, the details that you have reported on the MCS differ from those on the ATO client register and therefore the form will not match. This could be the TFN, or it could be the other member details including name, address and/or date of birth that are different to our system.

    What should funds do when they get a Please Resolve letter?

    • If you receive a Please Resolve notification you should contact your member to confirm that the details that you hold for the member are correct.
    • Where the member confirms the data held by the fund is correct, funds can encourage the member to update their ATO details directly by:  
      • accessing individual online services
      • calling 13 28 61 between 8.00am and 6.00pm, Monday to Friday if you're calling within Australia
      • calling +61 2 6216 1111 between 8.00am and 5.00pm and ask to be transferred to 'personal tax enquiries' if you are calling from overseas
      • completing a change of details for individuals (NAT 2817, 249KB) form
      • making an appointment at your nearest shopfront – phone 13 28 61
    • Where the member advises the fund record is incorrect:  
      • funds should arrange to update their member records as required, and
      • re-lodge superannuation MCS with the new member details including the TFN, new address, date of birth or name as per their updated data.

    Reminder- Invalid TFNs

    If you are aware that a TFN is invalid, the TFN field should be zero-filled. Some circumstances where this would occur include:

    • the TFN does not meet the TFN algorithm
    • the TFN is a ‘TFN exemption code’ rather than an actual TFN
    • if the TFN quoted is not a 9 digit TFN. If the TFN quoted by the member or employer is an 8 digit TFN, it will be an invalid member TFN.
    • the first digit in a 9 digit TFN quoted must not be a zero.

    For more information please refer to the Member Contribution Statement (MCS) electronic reporting specificationExternal Link.

    Surcharge assessment runs for 2016

    Superannuation contribution surcharge was abolished from 1 July 2005. However, the ATO continues to administer the surcharge legislation in relation to contributions and relevant termination payments made or received between 20 August 1996 and 30 June 2005 inclusive.

    The surcharge assessment run will occur in May 2016 and November 2016 only.

    Member contribution statements and Assessment Variation Advices (AVAs) need to be received by the ATO by late March 2016. We will confirm the date in the next communique in order to be included in the May run.

    Lost Member Report (LMR) re-report 2016

    Just a reminder that the ATO is conducting a full LMR re-report for the period ending 31 December 2015. The due date for the statement has been deferred from 30 April 2016 until 31 May 2016.

    Information to include

    • All lost (L) and inactive (I) members held by the fund as at 31 December 2015
    • Provider details – ensure that this contains the full registered name of the fund
    • Supplier details – ensure that this contains the  
      • full registered name of the supplier, and
      • contact details of the person lodging the form

    Information not to include

    Do not include any lost accounts that:

    • are Found (F), Transferred (T), or reported in Error (E)
    • have account balances under $4,000
    • belong to deceased members
    • belong to members who are over 65 years of age
    • were in the USM Statement lodged prior to 30 April 2016

    The ATO quality assurance process

    The LMS files will be subject to quality assurance checks to ensure incorrect information (listed above in ‘information not to include’) is not included. If your file passes the check you will receive an outcome of lodgement report. If it does not, we will contact you to discuss the errors and request you lodge a new LMS with the correct information.

    Release authorities who to pay

    When you process a superannuation release authority statement that you confirm to who the payment should be made. This may be your member or it could be the ATO.

    If you do process a release authority statement incorrectly and release amounts directly to your members, when you should have sent the money to the ATO, you will still be required to pay the right amount to the ATO within the legislated timeframe. You will then need to separately recover any overpaid amount from your members.

    The easiest way is to avoid paying twice is to look at the covering letter attached to the release authority statement form to see to who the payment should be paid.

    It is also important to note that when processing a release authority form:

    • You always need to send the ATO the release authority statement, whether or not any money is released
    • You don’t need to attach a covering letter when you return the statement to the ATO.

    We have already contacted a small number of funds in relation to incorrectly processed release authorities for Fairer Taxation of Excess Concessional Contributions (FTECC) and the Refund of Excess Non-Concessional Contributions (RENCC).

    While we may not necessarily be applying penalties at this point, given these are new measures, we will be considering these types of errors as part of the Large APRA Fund Risk Differentiation Framework program.

    Further information on your release authority statement obligations is available on our website at: APRA-regulated-funds/Managing-member-benefits/Release-authorities

    SuperMatch2 is up and running

    To help your fund more effectively locate and consolidate your members’ other super accounts, you can use our new SuperMatch2 service – an enhanced super accounts searching facility for super funds.

    In the 2014/2015 year, the existing SuperMatch service already assisted funds to locate over 6 million accounts with a value of $264 billion. With enhancements such as real time responses, this new SuperMatch2 service not only allows you to search for your member’s super accounts, but you can also automatically claim their ATO held super.

    De-commissioning of SuperMatch

    We will be decommissioning the existing SuperMatch service in November 2016, so you need to take steps to develop software for SuperMatch2 now.

    Update: The SuperMatch ECI service will not be decommissioned in April. We will assess the need for this service in mid-2017 and provide advice at that time about its decommissioning.

    To find out more, visit:

    NOTE: The SuperMatch2 terms and conditions prohibit its integration into any external service you provide to your members or their representatives. A breach of this condition will result in denial of access.

    Publication of the SuperMatch2 Conformance SuiteExternal Link in the Software Industry Partnership Office restricted development environment.

    Online troubleshooting for businesses and tax practitioners

    The information contained within the following link provides useful ATO online troubleshooting information for superannuation industry stakeholders including AUSkey, DASP and ECI.

    Troubleshooting-for-businesses-and-tax-practitioners

    Portal outages and system maintenance

    For planned and un-planned outages or current system issues please refer to the most up to date information which is located at:

    General-Online-services-System-Maintenance

    Issues impacting performance of the portal, or menus within the portal, may also be published to the “key issues” section on your Portal home page.

    This email contains hyperlinks. To protect your security we recommended you copy and paste the hyperlink into the address bar on your browser. For more information about ensuring your online security visit ato.gov.au/onlinesecurity

    Regards

    Client Relationship Team (CRT)

    Client Account Services

    Australian Taxation Office

      Last modified: 26 Apr 2017QC 50574