Show download pdf controls
  • Super Communique November

    9 November 2017

    In this month's edition:

    Update on the future of fund reporting

    Member Account Transaction Service (MATS)

    MATS webinars

    We recently ran two webinars on MATS – the baseline design and the arrangements for the transitional period to cutover to MATS.

    You can now access the webinar recordings, presentation slides and transcripts from our website and atoTV.

    Note: the webinar contains the transitional arrangements that were proposed at the time of delivery and some concepts will be subject to change.

    Next steps:

    Minor changes to MATS technical documents

    In CRT Alert 067/2017 we advised you of minor changes to the MATS message structure table and schemas:

    • some definitional taxonomy element names will change
    • some definitions of newer elements will be reworded to clarify their meaning.

    Note: the design has not changed and no elements have been added or removed.

    The updated documents will be available from 16 November.

    See also:

    Member Account Attribute Service (MAAS)

    Guidance document for MAAS validation rules

    In your feedback you requested more information about the upcoming MAAS validation rules, so we've published an informal guidance document on Let's Talk.

    The formal technical validation rules will be published to the SBR website from 14 December 2017.

    MAAS testing

    Testing for MAAS functionality will start from 14 December 2017, and we've begun planning with digital service providers (DSPs) and gateways.

    However, even if you plan to implement MAAS in April 2018 you'll still need to lodge your lost member statement (LMS) for June to December 2017 (due on 30 April 2018) through ECI and not MAAS.

    Next steps:

    SuperStream – implementation update

    USM rollovers

    All funds have advised they have completed their upgrade to USM rollovers version 2. Any fund or service provider who has not already turned off their support for rollovers version 1 can do so immediately. Rollovers version 1 messages will no longer be processed by the receiving party.

    The special purpose team established to review issues with the USM design now has a clear roadmap to resolve each of the five issues identified. More information on these issues can be found on Let's Talk.

    Next steps:

    Government contributions

    Most funds have now cutover to receiving government contributions through SuperStream. Only a handful are yet to deploy their solutions and we are working closely with them to ensure they cutover to SuperStream as soon as possible.

    Response messaging

    The due date for implementing error response messaging was 31 August 2017 and all funds are reporting that this work is complete.

    Correct implementation of error response messaging is critical for the integrity of the superannuation system. We continue our monitoring and will contact funds if we see invalid response messages for USM rollovers or government contributions that do not technically conform to the SuperStream standard. In these circumstances we will seek confirmation of the plan to resolve these issues.

    Where we continue to see repeat issues or no plan to address them, we'll bring this to the attention of APRA for their consideration.

    It is the trustees' obligation (not the ATO's) to consider the impact of an invalid error response message and whether it would constitute a reportable breach to APRA.

    We will also continue to work with the SuperStream Technical Committee and the Continuous Improvement Working Group to improve industry’s conformance with the standard.

    See also:

    Unclaimed Superannuation Money

    Changes to USM adjustments after 30 November

    In CRT Alert 069/2017 we advised we are changing the way you need to lodge USM adjustments from 30 November 2017.

    You can continue to report adjustments under the existing process until 5.00pm 30 November 2017.

    There will be a short period where no adjustments will be accepted to allow us to process all adjustments before the new system takes effect.

    From 11 December:

    • increased adjustments can be lodged using the existing USM statement process for the additional amount. This process will continue until you cutover to SuperStream for USM reporting in early 2018.
    • you'll need to use a new USM adjustment template for decreased adjustments. Use this template if you need to decrease, transfer or cancel a previously reported entitlement. We'll make the new template available on the ATO website from 11 December, and you'll be able to lodge this template by email to SuperCRT@ato.gov.au.

    NOTE: This lodgment process has changed and the information above is out of date. Refer to CRT Alert 073/2017 for up-to-date details.
    From 11 December 2017 you'll be able to lodge the USM adjustment and USM non-lodgment advice templates through the business portal.

    Please do not email Super CRT with your USM adjustment or NLA templates.

    Next steps:

    USM non-lodgement advice

    We're introducing a USM non-lodgment advice (NLA) template that can be used to lodge a nil statement.

    We'll publish the USM non-lodgment advice template on our website before 11 December 2017.

    You'll be able to lodge the completed template by email to SuperCRT@ato.gov.au.

    You can report NLAs either through the existing ECI process or start using the new NLA template.

    Fund testing

    Funds have started testing SuperStream implementations for section 20C notices and fund-to-ATO USM rollovers.

    We are on track to release the production code on 9–10 December 2017 and we've begun planning for the January 2018 business deployment verification (BDV) exercise.

    Next steps:

    Transfer balance cap reporting update

    Updated paper report and instructions

    On 22 September 2017, the paper Transfer Balance Account Report (TBAR) and instructions were published on our website.

    Based on industry feedback we have made changes to the paper form and instructions.

    What’s changed?

    • Multiple events can now be reported per member (excluding child death benefit income streams and child reversionary income streams).
    • Clearer instructions on:  
      • how to report pre-1 July 2017 income streams
      • when to use the retirement phase value (RPV) event for the purpose of a member's total super balance (not required for 30 June 2017)
      • the value and effective date that must be reported for all event types with the exception of a commutation authority – deceased (CC3) and commutation authority defined benefit income stream (CC4).
       

    The updated paper TBAR and instructions are now available.

    Next steps:

    Setting up access permissions

    Some funds have experienced difficulty setting up their access permissions to support TBAR reporting. Instructions to help you set up these permissions are now available on the Let's Talk superannuation community.

    Next steps:

    Notifying a member of a response to a commutation authority – seeking feedback

    Where one of your members has exceeded their transfer balance cap, and you have been issued with a commutation authority directing you to commute an amount out of their superannuation income stream – you must notify the member within 60 days of your response to the commutation authority. You may face an administrative penalty if you fail to do so.

    Proposed process for funds notifying members

    We don't plan to require you to provide this information to your members on a standard ATO form.

    You can use your own business processes and you will meet the approved form requirements if you include the following details in the correspondence you send to your member:

    • the member’s details
    • details from the commutation authority issued to you, including:  
      • issue date
      • income stream account number
      • due date
      • unique superannuation identifier (if applicable)
      • member client identifier (if applicable)
      • amount to commute
       
    • where you pay a lump sum in accordance with the commutation authority, the:  
      • amount of the lump sum paid
      • the date it was paid
       
    • where you are unable to comply with the commutation authority (for example if the income stream is a capped defined benefit income stream, the member is deceased or the maximum available release amount is nil), you should notify the member of this. Although not legally required, it may be good practice to also advise your member of the reason you were unable to comply
    • a signed statement that the information is true and correct.

    Naturally, you can provide your members with additional information if you think it appropriate to do so.

    Next step:

    Clarification of PAYG payment

    All members in receipt of a capped defined benefit income stream (CDBIS) must be reported on the PAYG summary annual report regardless of their age and tax withheld.

    The notation at paragraph 6.88 of the electronic reporting specification for the payment summary annual report will be updated to read:

    For superannuation lump sums do not show taxed element amounts paid to persons on or after their 60th birthday unless a lump sum payment is made to a non-dependant due to death.

    Information changes to Transfer Balance Account Reporting specification

    We've released draft changes to the Transfer Balance Account Report specification and we want your feedback. The changes are informational and seek to:

    • clarify when accumulation phase values and retirement phase values need to be reported
    • clarify a zero amount must be reported as an accumulation phase value/retirement phase value (APV/RPV)
    • align the wording of the value of the lump sum to be reported with that used in the MAAS
    • clarify that super providers who need to request an extension of time to lodge should contact us via superconsultation@ato.gov.au.

    The algorithms in Section 9 have also been updated.

    Note: In dot point 2 above we previously stated 'clarify a zero amount must be reported as an accumulation phase value/retirement phase value (APV/RPV)'. This was incorrect and we have replaced 'must' with 'may' above." 

    Next steps:

    Fund reporting and family law – splitting non-member spouse amounts

    We’ve had queries around whether family law splitting non-member spouse amounts need to be reported to the ATO, and offer this clarification.

    Trustees of superannuation funds may have fund reporting obligations depending on how they process non-member spouse amounts arising from a family law superannuation agreement or a splitting order from a court.

    If an account for the non-member spouse amount has been created and the family law split amount has been transferred from the spouse account into this new account, you will need to lodge a member contributions statement (MCS) for the non-member spouse account. This is regardless of whether the non-member spouse removes the amount from the fund.

    If, however, an account has not been created for the non-member spouse amount, an MCS is not required for the non-member spouse.

    See also:

    Speech to CPA National Congress

    On 17 October 2017 ATO deputy commissioner James O'Halloran addressed the CPA National Congress on 'Super reform 1 July 2017 – an ongoing implementation'.

    Mr O'Halloran took the opportunity to share his observations about the superannuation sector, the impact of the super reforms and to highlight some considerations for the future. He said:

    The government’s recalibration of super is of course a major development. I am sure we all found the lead up to 1 July challenging at times, but the experience has better prepared us for what is to come, for there is certainly more to do.

    Mr O'Halloran also spoke about:

    • renewed visibility of ATO data
    • changes to reporting arrangements
    • APRA-regulated funds and reporting member contribution amounts
    • early observations on some behaviours across the sector.

    Next steps:

    See also:

    Removal of the anti-detriment provision

    The anti-detriment provision has been removed with effect from 1 July 2017. This change will ensure consistent treatment of lump sum death benefits across all super funds.

    An anti-detriment payment (also called the tax saving amount) is an additional lump sum amount that may be paid to an eligible dependant when a lump sum death benefit is paid. The payment represents a refund of the 15% contributions tax paid by the deceased member over their lifetime.

    If your member dies on or after 1 July 2017 you'll be unable to include an anti-detriment payment as part of a death benefit.

    • If your member died before 1 July 2017, you have until 30 June 2019 to make the anti-detriment payment.

    From 1 July 2019:

    • You can no longer make anti-detriment payments, regardless of the date your member died.
    • You also cannot claim a deduction for the anti-detriment payment if you were not eligible to make the anti-detriment payment.

    See also:

    Client experience surveys labelled 'suspicious' by email security

    Since August, we've invited you to provide feedback via a survey if you’ve had an interaction with the ATO on a superannuation issue in the previous month.

    Thank you to everyone who has completed a survey – your feedback is invaluable to help us improve our interactions with you.

    We believe some of our surveys haven't reached clients because their internal email security systems treated our survey email as ‘suspicious’.

    If you have encountered this, we would like to reassure you that these surveys are legitimate and listed among our current research projects as ongoing research.

    If you are selected as a survey participant, you will receive an email invitation titled ‘Let us know your thoughts’ from APRAFundExperience@ato.gov.au. A reminder email is also sent one week before the survey closes. The survey takes less than 10 minutes to complete and is anonymous. Once you've completed it, you’ll be excluded from future surveys for three months.

    When we’ve received a statistically significant number of completed surveys, we’ll talk to you about improvement opportunities identified in the survey results.

    Next step:

    Binding death nomination – unclaimed super money

    When someone comes to us to claim a death benefit we hold as unclaimed super money (USM), it's important for us to respond to them within a reasonable timeframe.

    You can help us meet those clients' needs by responding to our initial request within 14 days of our original request.

    It is a legal requirement that the Commissioner pay USM owing to a deceased estate to the death beneficiaries nominated under a valid binding death nomination. We can only obtain this detail from the super fund.

    When we receive a claim to pay USM to the beneficiary or legal personal representative of a deceased account holder, the Superannuation (unclaimed money and lost members) Act 1999 requires us to determine who the super fund would have been required to pay if the individual’s account had not been paid to the ATO as USM. 

    We contact super funds via email to determine if there are any death beneficiaries who should be paid and what percentage each death beneficiary is entitled to.

    Next step:

    Incorrect withholding for super payments

    We've published a new webpage based on your feedback with information relating to incorrect tax withholding on superannuation payments.

    This page will guide you in situations where the incorrect amount of tax has been withheld. It features:

    • scenarios where an insufficient amount of tax may be withheld
    • scenarios where too much tax may be withheld
    • actions to take depending on the financial year in which the mistake is identified
    • examples for each scenario.

    Next steps:

    Lost member reporting for 30 April 2018

    Funds will be required to lodge a lost member statement (LMS) on or before 30 April 2018 for the period from 1 July to 31 December 2017.

    For the 1 January to 30 June 2018 period lost members will be reported using the Member Account Attribute Service (MAAS).This means you will need to lodge your LMS via your existing reporting channel before you begin onboarding for the MAAS.

    Once you have completed your production deployment for MAAS you can then use this service to update the lost status of your member as required.

    If you're unsure of your reporting obligations or have queries or concerns about the cutover to MAAS, email SuperStreamStandards@ato.gov.au.

    New ATO Community

    We've set up an online ATO Community to help you and your members answer questions and participate in conversations on general tax and super topics.

    The Community page is a 24/7 online forum where you can ask questions, find information, and help others with general tax and super questions.

    Our support team moderates posts on the Community to ensure the information you receive on the Community is accurate. Posts marked 'ATO-certified' have been reviewed to ensure they are accurate and easy to understand.

    Provide feedback

    As the Community is a new service, we welcome and encourage your feedback to ensure we continually deliver an efficient and accurate service to you.

    Your feedback helps us provide you with a better experience.

    Next steps:

    ATO Annual Report 2016–17 released

    The ATO's 2016–17 Annual Report is now available.

    Highlights

    Supporting APRA-regulated super funds

    In partnership with industry, we are undertaking a major redesign of APRA-regulated super funds' reporting processes to shift from the current annual reporting to a more contemporary event-based regime. This reform will leverage SuperStream and will meet a growing need to provide members with more up-to-date account information.

    Implementation of SuperStream

    The implementation of SuperStream set a new benchmark on how we consult with industry to improve productivity for business and has so far realised significant efficiencies – about $400 million per year for funds, $400 million per year for employers and generates savings for members at an estimated $2.4 billion per year.

    Meeting our challenges

    In the Commissioner's review, Commissioner of Taxation Chris Jordan said thank you to all the people in the ATO, our stakeholders, partners and service providers for contributing to the great results in 2016–17.

    "I want to thank those who have supported us, particularly when we were dealing with the highly unusual events of the IT hardware failure and Operation Elbrus."

    Next steps:

    See also:

    Division 293 tax – end benefit notice

    As mentioned in the April 2017 Communique – from 1 July 2017, super providers won't be required to calculate an end benefit cap if a member does not have an outstanding amount on their Division 293 tax debt account at the time the benefit becomes payable.

    The super fund can now send a request to the Commissioner, via an approved form, enquiring if a member’s Division 293 deferred debt account is in debt.

    Requests to find out if account is in debt

    Funds can ask the Commissioner to advise if the Division 293 deferred debt account is in debt by either:

    • sending an email containing the request with the required information to SuperCRT@ato.gov.au and include in the subject line – reference MBR-293
    • contacting SuperCRT@ato.gov.au and arranging to submit the request with the required information via secure data transfer facility (DTF).

    You must include the following information in your request:

    • Fund name
    • Fund ABN
    • First and last name of the person making the request (must be an authorised contact of the fund)
    • Position held
    • Business hours phone number
    • Member account number
    • First and last name of the member
    • Member's date of birth
    • Member's address

    You must also include one of the following declarations: 

    • If the request is issued via unencrypted email:

    I declare that the information in this email is true and correct. I understand that the ATO does not control the path of inbound emails, so the privacy of information sent by unencrypted email cannot be guaranteed. I am aware of this risk when I choose to communicate with the ATO via email.

    • If the request is issued via data transfer facility:

    I declare that the information given in this request is true and correct.

    If the account is not in debt

    Even if the member's Division 293 deferred debt account is not in debt you must still send an end benefit notice to the Commissioner.

    If the account is not in debt, you'll be directed to write the words ‘Not Applicable’ on the end benefit notice at Question 14 next to "What is the end benefit cap amount?"

    If the account is in debt

    If the account is in debt, you'll be required to calculate the end benefit cap as usual and complete the form accordingly.

    Monthly super remittance and recovery processing schedule

    The ATO super processing schedules for October and November 2017 are outlined below. This reflects the channel, files and payments for each product.

    Table 1 – November 2017 SuperStream

    SuperStream

    Date from

    LISC Recovery

    Thursday 02 November

    Co-Contributions Remittance

    Tuesday 07 November

    USM Remittance

    Friday 10 November

    SG Recovery

    Tuesday 14 November

    SG Remittance

    Tuesday 14 November

    SHAsa Remittance

    Thursday 16 November

    LISC Remittance

    Tuesday 21 November

    USM Remittance

    Friday 24 November

    Co-Contributions Recovery

    Tuesday 28 November

    LISC Recovery

    Wednesday 29 November

    Table 2 – November 2017 ECI/paper

    ECI/Paper

    Week beginning

    LISC Recovery

    Monday 06 November

    First Home Saver Account Remittance

    Monday 06 November

    Co-Contributions Remittance

    Monday 06 November

    USM Recovery

    Monday 13 November

    SG Recovery

    Monday 13 November

    SG Remittance

    Monday 13 November

    USM Remittance

    Monday 13 November

    SHAsa Remittance

    Monday 20 November

    LISC Remittance

    Monday 20 November

    USM Remittance

    Monday 27 November

    Co-Contributions Recovery

    Monday 27 November

    Table 3 – December 2017 SuperStream

    SuperStream

    Date from

    Co-Contributions Remittance

    Tuesday 05 December

    USM Recovery

    Wednesday 06 December

    USM Remittance

    Friday 08 December

    SG Recovery

    Tuesday 12 December

    SG Remittance

    Tuesday 12 December

    SHAsa Remittance

    Thursday 14 December

    LISC Remittance

    Tuesday 19 December

    Table 4 – December 2017 ECI/Paper

    ECI/Paper

    Week beginning

    LISC Recovery

    Monday 04 December

    First Home Saver Account Remittance

    Monday 04 December

    Co-Contributions Remittance

    Monday 04 December

    USM Recovery

    Monday 11 December

    USM Remittance

    Monday 11 December

    SG Recovery

    Monday 11 December

    SG Remittance

    Monday 11 December

    SHAsa Remittance

    Monday 18 December

    LISC Remittance

    Monday 18 December

    Super consultation report

    The tables below summarise scheduled consultation activities for November 2017.

    For a complete picture of all superannuation consultation and engagement activities visit the Let's Talk – Superannuation CommunityExternal Link and look under the supporting material heading. You can also view previous months' consultation snapshots.

    Send your feedback or questions to SuperConsultation@ato.gov.au.

    Table 5 – November 2017 upcoming events – APRA-regulated fund consultation and SuperStream events

    Date

    APRA-regulated fund consultation or engagement activity

    Various

    Engaging with Funds via phone as they provide responses to our RDF early engagement campaign work

    29 Nov – 1 Dec

    ASFA Conference

    TBC

    APRA Fund Communication Reference Group

    2 November
    16 November
    30 November

    SuperStream Implementation Working Group

    Telepresence
    8 November
    PHU 22 November

    SuperStream Technical Committee

    24 November

    SuperStream Continuous Improvement Working Group telepresence

    29 November

    Superannuation Administration Stakeholder Group (SASG)

    Table 6 – November 2017 – upcoming super experience consultation

    Date

    Super experience consultation or engagement activity

    21 November

    Superannuation Industry Stewardship Group (SISG) formal meeting

    Table 7 – November 2017 – upcoming Single Touch Payroll

    Date

    Single Touch Payroll consultation or engagement activity

    1 November

    Not-for-profit CFO Conference

    3 November

    STP Briefing to Catholic Schools Payroll Group

    8 November

    External Payroll Seminar

    9 November
    15 November
    16 November
    22 November
    23 November
    29 November

    ATO Open Forum

    9 November

    Readiness Working Group

    9 November

    Software Developers Technical Working Group

    13 November
    20 November

    Key Agent Meeting

    14 November

    SA Whole of Health Accounting & Taxation Information Forum

    16 November

    STP Engagement Forum

    17 November

    Tax Practitioner Stewardship Group (TPSG)

    21 November
    28 November

    Digital Service Provider Session

    21 November
    27 November
    29 November

    Intermediary National Roadshow

    23 November

    STP Advisory Group

    23 November

    Recruitment Agency STP Lunch

    23 November

    Recruitment Agency STP Session

    23 November
    24 November

    Master Builders Association National Lunch

    24 November

    STP Design Working Group

    24 November

    Institute of Public Accountants National Conference

    28 November

    BAS Agent Association Group

    21 November

    Superannuation Industry Stewardship Group

    30 November

    Technical Working Group

    30 November

    Key Agent National Convention

      Last modified: 29 Nov 2017QC 53887