• Superannuation Communique January 2016

    Client Relationship Team (CRT)

    Excess concessional contributions – December shutdown period

    Superannuation services – December shutdown period

    FINAL Member Contributions Statement Specification v 10.1.1 (MCS ERS)

    Superannuation payment allocation

    Law interpretation

    Division 293 tax – updates have been made to the End Benefit Notice (EBN)

    Unclaimed Superannuation Money (USM) – section 20c notices

    SuperMatch 2 is up and running

    Departing Australia Superannuation Payment (DASP)

    Online troubleshooting for businesses and tax practitioners

    Portal outages and system maintenance

    Monthly superannuation remittance and recovery processing schedule

    The ATO superannuation processing schedule for January 2016 and February 2016 is outlined below.

    January 2016

    Product

    Correspondence issuing week beginning

    Co-contributions remittance advice

    Monday, 11 January 2016

    First Home Saver Account (FHSA) remittance advice

    Monday, 11 January 2016

    Super Guarantee remittance advice (Legacy)

    Monday, 11 January 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 11 January 2016

    Super Guarantee recovery notice (ICP)

    Monday, 18 January 2016

    Super Guarantee remittance advice (ICP)

    Monday, 18 January 2016

    Unclaimed Super Monies (USM) recovery

    Monday, 18 January 2016

    Superannuation Holding Account special account (SHAsa) remittance advice

    Monday, 25 January 2016

    Low Income Superannuation Contribution (LISC) remittance advice

    Monday, 25 January 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 25 January 2016

    February 2016

    Product

    Correspondence issuing week beginning

    Co-contributions recovery

    Monday, 1 February 2016

    Low Income Superannuation Contribution (LISC) recovery

    Monday, 8 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

    Client Relationship Team (CRT)

    The Super CRT mailbox will be unattended from midday on the 24 December 2015 to 3 January 2016 (inclusively). We will address your queries upon our return on 4 January 2016.

    Excess concessional contributions – December shutdown period

    Unlike prior years, we won't be stopping our super excess contributions processing for the 2015 ATO closedown period. As most of our processing is now linked to the income tax assessment process, we will only stop issuing assessments from 24th December 2015 to 3rd January 2016. This means that correspondence for excess contributions, including release authorities requiring action, will continue to issue right up to 24 December.

    ATO has been consistent with its message to funds around the administration of release authority statements. That is funds are required to return release authority statements with payment to the ATO within 7 days of the issue date. Where funds are not able to comply with this legislative requirement and have made a reasonable effort to return the release authority statement and payment within the legislative timeframe and have not been able to do so, the ATO will apply a practical risk based approach in applying administrative penalties.

    Superannuation services – December shutdown period

    Further to CRT Alert 50/2015 the major systems release occurring over the Christmas period will affect additional ATO core systems.

    ATO Systems will be unavailable from 11.00pm on 25 December 2015 to 6.00am on 29 December 2016. Online services for individuals and Departing Australia superannuation payment (DASP) online will not be available from 11.00pm Friday 25 December 2015 – 7.00am Monday 4 January 2016 AEDT. SuperMatch will be unavailable 11.00am Thursday 24 December – 6.00am Monday 4 January 2016 AEDT

    Incidents can be reported by calling 1800 500 122 or via ATO IT Service Desk until 4 January 2016 when normal support processes will be available. Minor incidents will not be actioned until 4 January 2016.

    What we are asking you to do

    Your members will be unable to access ATO online services for individuals or DASP online. As such no Electronic Portability File (EPF) messages will be sent during this period and DASP applications will not be available for collection. SuperMatch files will not be processed.

    We appreciate this outage may cause difficulties and apologise for any inconvenience. We will endeavour to restore services as soon as possible however; we recommend you have contingencies in place.

    We value your support and patience while we undertake maintenance work on our systems.

    FINAL member contributions statement specification v 10.1.1 (MCS ERS)

    The final member contributions statement electronic reporting specification v 10.1.1 (MCS ERS) is now available. Version 10.1.1 applies from 1 July 2016 for lodgement of all MCS files including amendments for prior years:

    Next step:

    Following consultation with industry regarding future changes to MCS reporting (Member information eXchange) we've ensured only very minor changes have been introduced in version 10.1.1. There are no changes to the validation rules required for version 10.1.1. The version number FMCSV010.1 in field SD08 that is currently accepted in the business portal will continue to be accepted. There is no change to this field for version 10.1.1.

    There is only one minor wording change made to the final to update the alert box in field 6.120 notional taxed contributions.

    What we are asking you to do?

    Where there is a successor fund transfer and grandfathering applies to the members notional taxed contributions in both the transferring and receiving funds, both parties to the transfer are to jointly contact the super client relationship team prior to the transfer. This is to avoid disadvantaging members and seek ATO advice concerning the way that annual grandfathering applies across the two funds party to the transfer. Successor fund transfers may require alteration to normal reporting patterns.

    Superannuation payment allocation

    Currently we're experiencing problems where superannuation remittances are being paid to the incorrect Head of Revenue (HOR). This can cause payment allocation delays and reverse workflows.

    Payments received by the ATO are allocated according to the Payment Reference Number (PRN) which accompanies the payment.

    Each PRN is unique and identifies the account, the fund, and the product (i.e. SG PVA, USM PVA, co-contribution PVA).

    The Statement of Account (SOA) sent to each fund provides the unique PRNs for each product using the Account Sequence Number (ASN), the fund TFN and the Head of Revenue (HOR) code.

    Example below:

    BPAY details for USM PVA Remittance

    Biller code

    75555

    Customer reference number

    554 00012 345 678 9015

    Return payment details for USM PVA Remittance

    Return payment EFT code

    554 00012 345 678 9015

    BSB number

    093 003

    Account number

    316385

    Account name

    ATO Deposits Trust Account

    The unique PRN for each superannuation product can be found on the SOA or by contacting the Payment Hotline on 1800 815 886.

    Below is a list of the Head of Revenue (HOR) codes

    Product

    Head of Revenue (HOR)

    USM Reporting

    29

    USM PVA Remittance

    15

    USM Recovery

    16

    LISC PVA Remittance

    54

    LISC Recovery

    55

    Super Guarantee PVA Remittance (ICP)

    17

    Super Guarantee PVA Remittance (Legacy)

    95

    Super Guarantee Recovery

    18

    SHAsa PVA Remittance

    92

    Co-Contribution PVA Remittance

    93

    Co-Contribution Recovery

    94

    Super surcharge

    26

    FHSA Government contribution return

    97

    FHSA contribution recovery

    98

    Division 293 Due and Payable

    11

    Law interpretation

    If you would like some assistance in relation to Law interpretation see:

    Division 293 tax – updates have been made to the End benefit notice (EBN)

    Updates were recently made to End benefit notice – superannuation provider Division 293 tax (NAT 74728). You can view the updated form and instructions on our website at: End benefit notice-superannuation provider Division293 tax

    Ensure you use the updated EBN form when lodging an EBN for your member. Note: don't use the older version of the form as we will not accept this.

    Main updates to the EBN form

    • There is a new Section A ‘Why you are lodging this form’. You need to choose either of four options: ‘original’, ‘amendment’, ‘error or omission’ or ‘revoke a deferred determination’.
    • Section C (previously section B). The ‘member details’ section now has a ‘PART 2’ which is completed if you need to report an ‘error or omission’ in relation to a previous EBN lodgement. There is also a ‘client identifier’ field that needs to be completed (see question 10 or 10a).
    • Section D (previously section C). The ‘benefit details’ section has changed at question 14 to specify the fact that you don't need to report an ‘end benefit cap’ where the reason for lodging the form is to ‘revoke a deferred determination’.

    Unclaimed Superannuation Money (USM) – Section 20c notices

    Preparations for the next round of Section 20c notices for Former Temporary Residents (FTR’s) is well advanced. We expect notices will commence issuing in February 2016. Should we be in a position to issue these notices earlier, a separate CRT alert will be issued.

    Please note when meeting reporting obligations, if an incorrect period is used, it will not only impact the immediate report but all subsequent reports until this is corrected

    SuperMatch 2 is up and running

    Our enhanced super accounts searching facility for super funds, SuperMatch 2, has been successfully deployed.

    This new web service is more streamlined and offers enhancements such as real time responses and allows you to request transfer of all types of ATO-held super for the benefit of your members. This means you can help your members more effectively locate and consolidate their super accounts.

    To help your transition, both SuperMatch and SuperMatch 2 will run concurrently until November 2016. You can choose to use either version provided you have the relevant software installed and with the appropriate access. To find out more, visit:

    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.

    Departing Australia Superannuation Payment (DASP)

    To help super funds and administrator's process DASP payments to former temporary residents more securely and efficiently, we are adding functionality that will allow former temporary residents to provide their bank account details within the claim form. This improved functionality will cater for both Australian financial institutions and international money transfers and will be deployed in early 2016. Although we have added these additional fields, we do highlight to former temporary residents that not all funds offer to make payments electronically, and fees and charges (including currency conversion fees) can apply.

    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.

    Next step:

    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:

    Next step:

    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 50573