• Superannuation Communique July 2016

    Monthly superannuation remittance and recovery processing schedule

    Lost Member Register (LMR) full re-report update

    Australian government guidelines on the recognition of sex and gender

    Manual cheques transitioning to manual EFT

    New concession for CGT exempt contributions

    Portal outages and system maintenance

    Monthly superannuation remittance and recovery processing schedule

    The ATO superannuation processing schedule for July and August 2016 is outlined below.

    July 2016

    Product

    Correspondence issuing week beginning

    Super Guarantee remittance advice (Legacy)

    Monday, 11 July 2016

    First Home Saver Account (FHSA) remittance advice

    Monday, 11 July 2016

    Co-contributions remittance advice

    Monday, 11 July 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 11 July 2016

    Unclaimed Super Monies (USM) recovery

    Monday, 18 July 2016

    Super Guarantee recovery notice (ICP)

    Monday, 18 July 2016

    Super Guarantee remittance advice (ICP)

    Monday, 18 July 2016

    Superannuation Holding Account special account (SHAsa) remittance advice

    Monday, 25 July 2016

    Low Income Superannuation Contribution (LISC) remittance advice

    Monday, 25 July 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 25 July 2016

    August 2016

    Product

    Correspondence issuing week beginning

    Co-contributions recovery

    Monday, 1 August 2016

    Low Income Superannuation Contribution (LISC) recovery

    Monday, 8 August 2016

    Super Guarantee remittance advice (Legacy)

    Monday, 8 August 2016

    First Home Saver Account (FHSA) remittance advice

    Monday, 8 August 2016

    Co-contributions remittance advice

    Monday, 8 August 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 8 August 2016

    Unclaimed Super Monies (USM) recovery

    Monday, 15 August 2016

    Super Guarantee recovery notice (ICP)

    Monday, 15 August 2016

    Super Guarantee remittance advice (ICP)

    Monday, 15 August 2016

    Superannuation Holding Account special account (SHAsa) remittance advice

    Monday, 22 August 2016

    Low Income Superannuation Contribution (LISC) remittance advice

    Monday, 22 August 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 22 August 2016

    Co-contributions recovery

    Monday, 29 August 2016

    Lost Member Register (LMR) full re-report update

    The processing of the Lost Member Statement (LMS) full re-report for the period ending 31 December 2015 is now complete.

    Initial results indicate 690,000 accounts valued at approximately $1.8 billion have been removed from the register.

    The full report was an opportunity to cleanse the lost member register (LMR) of incorrect accounts

    This means individuals will have accurate information when searching and consolidating their lost accounts, and superfunds should experience a reduction in the number of member enquiries caused by inaccurate information.

    We greatly appreciate your efforts in lodging the re-report.

    For more information

    If you have any questions, please email SuperCRT@ato.gov.au

    Australian government guidelines on the recognition of sex and gender

    Background

    From 1 July 2016, the Government is required to comply with the Australian government guidelines on the recognition of sex and gender. The government policy introduced the requirement to reflect a third gender in their records.

    As a result, superannuation funds may notice that on some forms and reports, we have added an ‘indeterminate’ option to the sex/gender field. In some forms and reports, we have removed the request for sex/ gender where it is not needed.

    We have received some queries about whether superannuation funds are required to comply with the government’s gender policy, and if so, how. In addition, we have been asked how superannuation funds should use the life expectancy tables if a member has identified themselves as being of indeterminate gender.

    Advice

    1) The Australian government guidelines on the recognition of sex and gender only apply to government agencies and, therefore, in most cases do not apply to superannuation funds. Unless you are a government superannuation fund, the only requirement for industry is to comply with changes to the specifications when using our forms.

    2) Specifications have been updated to either include a 3rd option for Indeterminate or the definition of unknown has been updated. Where a third gender option has been added to any forms or specifications, you need to comply with the required field.

    The ATO does not expect industry to incur costs to make small interim changes that would quickly become obsolete. Therefore, where a specification is due to be reformed within the next few years, only definitional changes have been made and will be fully updated in the new versions.

    3) Where a fund member has identified themselves as indeterminate, funds have asked how the life expectancy tables should be used, as the tables only have male and female as options. These tables are produced by the Australian Government Actuary and we have consulted them on the issue.

    a) Can funds continue to ask members to provide their gender as either male or female for the purposes of the life expectancy tables?

    Yes. As the government’s gender policy does not apply to non-government superannuation funds and the life expectancy tables do not include an indeterminate gender category, funds can continue to ask for a member to identify as either male or female for annuity or pension calculation purposes. The data does not exist at present that would support the actuarial analysis needed to estimate the life expectancies of those identifying as being of indeterminate gender.

    b) Where a member does not provide their gender to the fund as either male or female, is there a legislative provision which provides for a default position?

    No, the law does not provide a default position of male or female.

    c) If no legislative default position exists, can the ATO advise funds to use either male or female as a default where members do not provide their gender as either male or female?

    No. If a fund member does not provide their gender as either male or female, funds would need to make a decision on their approach based on their own policy and rules. However, the ATO cannot guide funds to a default position.

    For more information

    The government policy is available here:

    https://www.ag.gov.au/Publications/Documents/AustralianGovernmentGuidelinesontheRecognitionofSexandGender/AustralianGovernmentGuidelinesontheRecognitionofSexandGender.PDFExternal Link

    If you have any questions, please email SuperCRT@ato.gov.au

    Manual cheques transitioning to manual EFT

    Background

    Occasionally, we receive an overpayment from superfunds acting in accordance with a release authority. When this happens we have to make a manual payment to you to return the money. We have previously made these payments by cheque, but will now make these payments via EFT.

    We will send you an email advising of this payment and provide you with the member details to which the payment relates.

    What you need to do

    When a payment is made to you in these instances you will need to ensure the payment is allocated according to the instructions in the email.

    For more information

    If you have any questions, please email SuperCRT@ato.gov.au

    New concession for CGT exempt contributions

    Background

    On 14 April 2016 the Superannuation Industry (Supervision) Regulations (SISR) were amended (specifically regulation 7.04 SISR) as a result of amendments to the Income Tax Assessment Act 1997 (ITAA 1997) regarding the CGT treatment of earnout rights arising from the sale of a business. The amendments apply in relation to ‘look-through earnout rights’ (defined in section 118-565 ITAA 1997) created on or after 24 April 2015.

    Information

    Generally, where the underlying disposal of a small business asset qualified for a CGT small business concession from which a contribution could be made to superannuation, a subsequent payment from a ‘look-though earnout right’ will be able to be accepted by a superannuation fund as long as the contribution is within 5 years after the end of the financial year in which the CGT event occurred.

    There are a number of criteria set out in new sub regulation 7.04(6A) SISR which must be met:

    • The amount does not exceed the member’s CGT cap amount
    • Were the amount to be accepted as a contribution, it could be covered under section 292-100 ITAA 1997 (certain CGT-related payments) in relation to a CGT event referred to in that section
    • The capital proceeds from the CGT event were or could have been affected by one or more financial benefits received under a look-through earnout right
    • Sub regulation 7.04(1) SISR would not have prevented the fund from accepting the amount as a contribution had it been made to the fund in the financial year in which the CGT event happened. For example a member may be over 65 and no longer working at the time of the payment from the ‘look-through earnout right’ but at the time of the CGT event that gave rise to the payment they met the requirements of sub regulation 7.04(1) SISR for a contribution to be accepted.

    The ATO is reviewing approved form NAT 71161 CGT cap election in light of the amendments.

    For more information

    If you have any questions, please direct these to the Client Relationship Team (CRT) SuperCRT@ato.gov.au

    Portal outages and system maintenance

    For information regarding current and future planned outages please see: SIPO - Planned OutagesExternal Link and SBR System Status websitesExternal Link.

    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 www.ato.gov.au/onlinesecurity

    Regards

    Client Relationship Team (CRT)

    Client Account Services

    Australian Taxation Office

      Last modified: 24 Nov 2016QC 50578