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  • Superannuation Communique June 2016

    Monthly superannuation remittance and recovery processing schedule

    Clarification of the need to lodge an End Benefit Notice

    Portal outages and system maintenance

    Monthly superannuation remittance and recovery processing schedule

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

    June 2016

    Product

    Correspondence issuing week beginning

    Low Income Superannuation Contribution (LISC) recovery

    Monday, 6 June 2016

    Super Guarantee remittance advice (Legacy)

    Monday, 6 June 2016

    First Home Saver Account (FHSA) remittance advice

    Monday, 6 June 2016

    Co-contributions remittance advice

    Monday, 6 June 2016

    Unclaimed Super Monies (USM) recovery

    Monday, 13 June 2016

    Unclaimed Super Monies (USM) remittance

    Monday, 13 June 2016

    Super Guarantee recovery notice (ICP)

    Monday, 13 June 2016

    Super Guarantee remittance advice (ICP)

    Monday, 13 June 2016

    Superannuation Holding Account special account (SHAsa) remittance advice

    Monday, 20 June 2016

    Low Income Superannuation Contribution (LISC) remittance advice

    Monday, 20 June 2016

    There are no further aggregation runs scheduled after the 17/06/2016 to accommodate end of financial year requirements for the ATO and funds.

    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

    Clarification of the need to lodge an End Benefit Notice

    Background

    A number of funds have requested clarification of the need to lodge an End Benefit Notice – superannuation provider form when an individual has ceased employment from an employer contributing to the defined benefit interest; however they have not taken a benefit/not entitled to take a benefit.

    Question

    • Is a super fund required to lodge an EBN when a benefit has not been paid from a defined benefit interest in the following circumstances?
      • Individual has ceased employment from employer contributing to the defined benefit interest.
      • A defined benefit has not been paid because either the individual did not request the funds to be paid (that is, to remain in the defined benefit account) or they are not eligible for withdrawal.
      • Defined benefit is still preserved in the defined benefit account.
      • The member account is still active.
      • No additional contributions can be accepted from the individual.
      • The super fund cannot calculate the end benefit cap amount and is not sure what date to input into questions on the EBN as the benefit has not been paid or have not been requested to be paid out.
       

    Answer

    No, a super fund is not required to lodge an EBN when a benefit has not been paid from a defined benefit interest in the circumstances described.

    Subsection 133-130(1) of the TAA defines an end benefit for a superannuation interest as being the first superannuation benefit to become payable from that interest (disregarding some specific benefits).

    In accordance with section 133-140 of the TAA, if an end benefit becomes payable from a superannuation interest for which the Commissioner keeps a debt account, the superannuation provider must give the Commissioner an end benefit notice (EBN) stating the amount of the end benefit cap mentioned in subsection 133-120(2) of the TAA and the expected date of payment of the benefit.

    Subsection 133-140(2) of the TAA states that the EBN must be given within 14 days after the earlier of (a) the superannuation provider receiving a request to pay the superannuation benefit; and (b) the superannuation benefit becomes payable.

    A superannuation benefit will become payable when either (a) the member requests payment of the benefit and the trustee is satisfied that the member has met a condition of release; or (b) a benefit must be paid despite no request being made.

    Such circumstances include where the member has died (the payment standards in the SISR provide for a compulsory cashing of benefits on a member’s death) or where the rules of the fund state that if a member terminates employment with the employer who was contributing to the defined benefit interest, the member’s interest must be transferred to another fund or another interest within the same fund i.e. the member is unable to remain a member if no longer employed by that employer.

    In each of these cases, the trustee would be required to calculate the member’s interest in the fund in order to make the payment.

    Where a member ceases employment, but is able to remain a defined benefit member of the fund and either chooses not to take a benefit, or is ineligible to (because they haven’t met a condition of release), their interest in the fund may still continue to grow, as in many cases, the rules of the fund provide for increases in line with CPI.

    Accordingly, no end benefit has become payable due to the employee ceasing employment with the employer sponsor. Therefore the fund trustee is not required to provide the Commissioner with an end benefit notice at that time.

    The end benefit will become payable when the member requests payment of a benefit, or for some other reason the fund trustee is required to make a payment from the member’s interest. It is at that time that the fund trustee will be required to provide the Commissioner with the end benefit notice.

    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

    As advised in CRT Alert 014/2016, the following services will be unavailable from 8 pm Thursday 9/06/16 until 8 am Saturday 11/06/16:

    • SuperTICK (versions 3)
    • EmployerTICK (2)
    • SuperMatch (2)
    • EPF
    • FVS

    The following services will be unavailable from 9 pm Thursday 9/06/16 until 6 am Friday 10/06/16

    • SuperTICK (versions 1 & 2)
    • EmployerTICK (1)

    This work will support performance improvements in both the production and test environments.

    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 50577