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  • Super Communique February

    In this month's edition:

    Member Account Attribute Service

    Provision of address program is stopping

    The January 2018 Communique included information about the recent provision of address program for the week starting 29 January 2018.

    This was the last run for the provision of address program. The program will be replaced by the Provision of Details Service (PODS), which is an optional component of the Member Account Attribute Service (MAAS). PODS will allow trustees to request ATO-held contact details for those members who are at risk of becoming lost. The Maintain Member Attribute (MMA) service will return updated contact details when members are reported as lost.

    Next step:

    See also:

    Readiness and implementation

    The majority of funds have now responded to our request for MAAS and Member Account Transaction Service (MATS) readiness dates. We'll be following up with the few funds that have yet to respond. The emerging fund onboarding picture for MAAS indicated the majority of funds will come on board during September 2018, while for MATS the majority intend to come on board in November 2018 and February 2019.

    We are now working through the information you provided us to plan our fund onboarding process including what this means for performance and capacity. We'll provide further information about our onboarding approach through the regular SuperStream Implementation Working Group (SSIWG) forums and the SuperStream Readiness and Implementation Let's Talk page.

    See also:

    Foundation data strategy

    As part of our foundation data strategy to guide you on how to provide the initial data to populate MAAS, we plan to release the MAAS Foundation Data Handbook in mid-February.

    We outlined the general strategy for how you will provide your foundation data to us in CRT Alert 086/2017 on 21 December 2017.

    The Foundation Data Handbook will provide information about:

    • which member accounts you need to include and how to report them
    • foundation data messaging responses
    • which account identifiers to use
    • which account attributes to report
    • how to report lost members in your foundation data.

    The Foundation Data Handbook will answer questions you've sent us about this.

    We will publish the Foundation Data Handbook on the SuperStream Readiness and Implementation Let's Talk page. We'll also publish a CRT Alert to notify you when it's available. If you haven't already, you can subscribe to CRT Alerts and Let's Talk updates.

    Next steps:

    See also:

    SuperStream – implementation update

    Duplicate SuperStream messages

    We are aware of instances where duplicate SuperStream data messages were sent from the ATO between 8 January and 1 February 2018. The messages have the same Conversation ID and Context ID, but a unique Message ID.

    We discovered the issue during the business deployment verification exercise for section 20C notices and unclaimed superannuation money (USM), and resolved the issue. However, we now understand this problem has also affected a small number of government contribution and USM messages sent during that time.

    We are gathering information about the number and type of affected data messages and will make direct contact with affected funds.

    In all instances, we will need to confirm which duplicate messages have been rejected or processed so we can determine the appropriate action. We appreciate your patience as we work to remediate this issue.

    Next step:

    • If you believe you have been affected by this issue contact SuperCRT@ato.gov.au for assistance.

    Unclaimed superannuation money

    USM adjustments and non-lodgment advice templates

    We have updated our templates for unclaimed superannuation money (USM) adjustments and USM non-lodgment advice (NLA) reporting. The new templates correct a formatting issue that prevented them being uploaded to the Business Portal. Make sure you're using the most current template by downloading from the links below.

    Increase adjustments

    If your adjustment involves an increased USM amount, report this to us by sending a new USM lodgment for the additional amount via ECI or SuperStream.

    Decrease, transfer or cancel adjustments

    Use the USM adjustment template if you need to decrease, transfer or cancel a previously reported entitlement. You can then send a new USM lodgment to report the correct entitlement via ECI or SuperStream.

    You must lodge your completed USM adjustment template through the Business Portal.

    Next steps:

    See also:

    Former temporary resident notifications (section 20C) and USM reporting

    Testing and business deployment verification

    Over 50% of funds have finished testing their solutions. This will confirm whether they are ready to receive and respond to former temporary resident notifications (section 20C notices) and initiate business-to-government USM rollover transactions via SuperStream.

    The external vendor testing environment (EVTE) is performing well and the test experience for funds has been favourable. Testing will continue through February to ensure all solutions are validated in EVTE.

    In late January, we began business deployment verification (BDV) and issued approximately 800 section 20C notices to the eight funds participating in BDV.

    We'll provide regular updates on the progress of BDV via our SuperStream Implementation Working Group (SSIWG) forums.

    We aim to review and confirm the outcomes of BDV and make a final decision on whether the remainder of industry can move to full production by 16 February 2018.

    If you're not involved with BDV you should continue your testing. Submit your production readiness checklist to us no later than 15 February if you wish to receive notices via SuperStream.

    The electronic commerce interface (ECI) channel will remain open for you to use if you haven’t completed testing in time to receive section 20C notices via SuperStream from 19 February.

    The conformance date for USM reporting is 30 April 2018.

    Next step:

    See also:

    Transfer balance cap update

    Transfer balance account corrections

    We have created transfer balance accounts for 1.2 million individuals and as at 31 January 2018 we have issued approximately 3,000 excess transfer balance (ETB) determinations to individuals who have exceeded their cap.

    We are concerned that some providers are incorrectly attempting to correct reporting errors. This may result in an adverse outcome for affected members. Incorrect information will also be visible to your members through their transfer balance account transaction history available through myGov.

    To correct a reporting error you need to cancel the original Transfer Balance Account Report (TBAR) and re-report the correct information.

    Example one

    A fund incorrectly reported an income stream with a value of $1 million, which should have been reported as having a value of $800,000.

    Instead of cancelling the original TBAR and reporting the correct information, the fund reports a member commutation of $1 million and then a new income stream of $800,000.

    Member impacts

    The member is still considered to have had a maximum transfer account balance of $1 million, which will reduce their available transfer balance cap space when the cap is indexed in the future.

    All of these events will be visible to the member through myGov.

    Example two

    A fund incorrectly reported an income stream with a value of $1.8 million as at 30 June 2017 that should have been reported as having a value of $1.6 million.

    Instead of cancelling the original TBAR and reporting the correct information, the fund reported that the member commuted the income stream some months later.

    Member impacts

    The ATO will consider that the member has been in excess for the period between 1 July and the date of the commutation and issue an ETB determination for that period.

    These events will be visible to the member through myGov.

    Next steps:

    Supporting members who have received an ETB determination

    On Thursday 15 February we will host a webinar about ETB determinations and how to support members who have received a determination because they’ve exceeded their transfer balance cap.

    Next steps:

    Commutation authorities

    We expect to start issuing commutation authorities to super funds in late March 2018.

    Notifying a member of a response to a commutation authority

    We may issue a commutation authority to you if a member has exceeded their transfer balance cap. A commutation authority will detail the amount that must be commuted from a specified income stream for that member. You must action the commutation authority and report to us using the TBAR within 60 days.

    You must also notify your member. There is no standard ATO form for providing the required information. You can use your own business processes to comply, and you'll meet the approved form requirements as long as you notify your member within 60 days of the date the commutation authority was issued and include the following details in the correspondence you send to your member:

    • the member's details, including:
      • name
      • date of birth
       
    • details from the commutation authority, including:
      • issue date
      • due date
      • income stream account number
      • unique superannuation identifier (if applicable)
      • member client identifier (if applicable)
      • the amount to commute
       
    • where a lump sum was paid in accordance with the commutation authority, details of the lump sum commuted, including:
      • the amount
      • the date it was paid
       
    • if you did not comply with the commutation authority because the income stream is a capped defined benefit income stream, a statement to this effect.
    • a declaration on the correspondence that the information it contains is 'true and correct' and a signature.

    Not commuting the amount

    If you do not commute the amount, you should take the following action by the due date.

    • Send us a transfer balance account report indicating one of the following reasons:
      • the income stream is a capped defined benefit income stream
      • the member is deceased, or
      • the maximum available release amount is nil.
       
    • Where you did not commute the income stream because it is a capped defined benefit income stream, you must notify your member of your choice not to commute the amount. Although it is not legally required, it may be good practice to also advise your member of the reason you were unable to comply.
    • Where you did not commute the income stream because the maximum available release amount is nil or the member is deceased, you are not required to notify the member (or their estate) of this. However, it may be good practice to advise this outcome to your member.

    See also:

    Super surcharge final lodgment date

    The cut-off date for assessment variation advices (AVAs) is 16 March 2018 for manual lodgment and 23 March for electronic lodgment.

    Over the past 12 months, we've consulted with industry to cease certain superannuation surcharge interactions and obligations for APRA-regulated funds.

    Feedback indicates most funds have reconciled their surcharge accounts and have lodged AVAs where required. You should process and return any further assessments from the February 2018 run in time for the final run in May 2018.

    If you think you're unable to meet these final lodgment dates you should contact us immediately. We may approve a lodgment extension in exceptional circumstances.

    Next step:

    2017 Diagnostic reports to large APRA funds

    The next iteration of the Risk Differentiation Framework is well underway and we are on track to release tailored diagnostic reports to APRA-regulated superannuation funds in March 2018.

    We produce the tailored diagnostic reports to help funds assess how well they are meeting their superannuation reporting obligations to the ATO. The reports will be based on the data reported by funds for the period ended 30 June 2017 and extracted at 31 December 2017.

    We encourage you to review your results, assess your reporting performance and identify priorities for improvement. We will host a webinar in early April to walk you through the diagnostic report and discuss overall results for the industry.

    We will contact the trustees of each fund to deliver and discuss the tailored diagnostic reports.

    Next steps:

    ATO online issues – total superannuation balance update

    In CRT Alert 002/2018 we said we were investigating a problem in which duplicate accounts cause incorrect total superannuation balance (TSB) information to appear in ATO Online and our internal systems. This defect has now been fixed.

    Duplication is still occurring where the member account number and member client identifiers on the 2016–17 MCS and TBARs with an effective date of 30 June 2017 are not identical. We will be contacting funds directly where this has occurred to re-report the incorrect forms.

    Individuals who have an incorrect TSB calculation will receive an alert on the home page of ATO Online to inform them of this error.

    See also:

    Upcoming webinars

    Excess transfer balance determinations

    This webinar will help you understand how best to support your members who have exceeded their transfer balance cap.

    When: Thursday 15 February 2018 2.30pm–3.30pm

    Where: Online – watch from any desktop or mobile device

    Topics for discussion will include:

    • an explanation of the ETB determination and the default commutation notice
    • why, if you are the only fund with accounts listed in the default commutation notice, the value of their account may not match what you reported to us
    • how an individual can see everything that makes up their transfer balance account
    • key dates your members must aware of, why they are important and what you can suggest a member can do if they don’t think they can meet those deadlines
    • what to do if you discover an error in your reporting affects your member’s ETB determination.

    Next Steps:

    Release authority process changes from 1 July 2018

    This webinar will discuss changes to the release authority process and answer your questions.

    In the December 2017 Communique we announced plans to simplify the release authority process for you and your members. These changes were summarised in a presentation slide deck and discussion board on Let’s Talk.

    When: 20 February 2018 2.00pm–3.00pm AEDT

    Where: Online – watch from any desktop or mobile device

    Next steps:

    See also:

    If you can't attend a webinar you can watch the recording on our website shortly after the event.

    See also:

    Update on the APRA Fund Communications Reference Group

    We established the APRA Fund Communications Reference Group to help us identify issues and develop solutions to improve our communication, engagement and collaboration with large super funds. It is made up of 17 industry representatives from 11 entities.

    At the second meeting on 31 January 2018, the group endorsed:

    • SuperNews as the preferred name for our soon-to-be-revamped newsletter, which will combine SuperUpdate and Super Communique. The first monthly issue is planned for distribution in March 2018
    • a proposed new format for the combined newsletter with articles published progressively throughout the month on the ATO website and a summary newsletter issued monthly
    • ATO exploring enhancements to the Superannuation Dashboard, including announcements about system issues for other services such as DASP.

    The next meeting is proposed for 1 March and will focus on how ATO provides and shares resources and information, in particular via our various websites, and an interactive discussion on potential improvements to the APRA-regulated funds area of the ATO website.

    Next steps:

    See also:

    Monthly super remittance and recovery processing schedule

    The ATO super processing schedules for February and March 2018 are outlined below. This reflects the channel the files and payments will be sent through for each product.

    Table 1 – February 2018 SuperStream

    SuperStream

    Date From

    Co-Contributions Remittance

    Tuesday 06 February

    USM Remittance

    Wednesday 07 February

    USM Recovery

    Wednesday 07 February

    SG Recovery

    Tuesday 13 February

    SG Remittance

    Tuesday 13 February

    SHAsa Remittance

    Thursday 15 February

    USM Remittance

    Wednesday 21 February

    LISC Remittance

    Tuesday 20 February

    SG Remittance

    Friday 23 February

    Co-Contributions Recovery

    Tuesday 27 February

    LISC Recovery

    Thursday 01 March

    Table 2 –February 2018 ECI/Paper

    ECI/Paper

    Week beginning

    USM Remittance

    Monday 05 February

    Co-Contributions Remittance

    Monday 05 February

    USM Recovery

    Monday 12 February

    SG Recovery

    Monday 12 February

    SG Remittance

    Monday 12 February

    SHAsa Remittance

    Monday 19 February

    USM Remittance

    Monday 19 February

    LISC Remittance

    Monday 19 February

    SG Remittance

    Monday 26 February

    Co-Contributions Recovery

    Monday 26 February

    LISC Recovery

    Monday 05 March

    Table 3 – March 2018 SuperStream

    SuperStream

    Date from

    Co-Contributions Remittance

    Tuesday 06 March

    USM Remittance

    Wednesday 07 March

    USM Recovery

    Wednesday 07 March

    SG Recovery

    Tuesday 13 March

    SG Remittance

    Tuesday 13 March

    SHAsa Remittance

    Thursday 15 March

    USM Remittance

    Wednesday 21 March

    LISC Remittance

    Tuesday 20 March

    SG Remittance

    Thursday 22 March

    Co-Contributions Recovery

    Tuesday 27 March

    LISC Recovery

    Thursday 29 March

    USM Remittance

    Wednesday 04 April

    Table 4 – March 2018 ECI/Paper

    ECI/Paper

    Week beginning

    Co-Contributions Remittance

    Monday 05 March

    USM Remittance

    Monday 05 March

    USM Recovery

    Monday 12 March

    SG Recovery

    Monday 12 March

    SG Remittance

    Monday 12 March

    SHAsa Remittance

    Monday 19 March

    USM Remittance

    Monday 19 March

    LISC Remittance

    Monday 19 March

    Co-Contributions Recovery

    Monday 26 March

    SG Remittance

    Monday 26 March

    LISC Recovery

    Monday 02 April

    Super consultation report

    Superannuation consultation activities for February are indicated below. Send feedback or questions to SuperConsultation@ato.gov.au.

    Visit Let's TalkExternal Link and look under Supporting material for Superannuation Consultation Snapshots

    Table 5 – upcoming events APRA-regulated fund consultation and SuperStream events (February 2018)

    Date

    APRA-regulated fund consultation or engagement activity

    2 February

    SuperStream Continuous Improvement Working Group telepresence

    7 February
    21 February

    SuperStream Standard Technical Committee Telepresence

    8 February
    22 February

    SuperStream Implementation Working Group

    Table 6 – upcoming Single Touch Payroll (February 2018)

    Date

    Single Touch Payroll consultation or engagement activity

    6 February

    Single Touch Payroll Client Focus Group

    7 February
    15 February
    28 February

    Key Agent Client Seminar

    8 February

    Single Touch Payroll APS Engagement Readiness Forum

    8 February

    Single Touch Payroll Design Working Group

    14 February

    Readiness Working Group

    15 February

    Single Touch Payroll Introductory sessions

    16 February
    19 February
    20 February
    23 February

    Employer information sessions

    21 February

    Single Touch Payroll Technical Committee

    21 February
    27 February

    Intermediary information sessions

    23 February

    Government Tax Conference

    26 February

    Single Touch Payroll Advisory Group

      Last modified: 09 Feb 2018QC 54534