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  • Super Communique October

    5 October 2017

    In this month's edition:

    Engagement forums popular with industry

    The SuperStream Industry Engagement Forum (IEF) survey closed on Friday 15 September 2017. The survey asked respondents to rate their satisfaction with the forum and broader questions relating to how well we currently communicate with large funds.

    Findings

    • The most significant finding was that industry professionals believe forums are an effective communication channel.
    • Ninety-three per cent of respondents agreed that it was helpful, would recommend it to other industry professionals and believed the content helps them fulfil their role. One of the respondents stated "This is an excellent forum and is an outstanding example of an incredibly effective communication channel".
    • Over 60% of respondents agreed our communication channels meet their needs.

    We have consistently heard that we need to look for opportunities to improve our approach to communication and engagement. We acknowledge there is work to be done and room to improve the client experience when it comes to communication. We are committed to improvement and will soon establish a Communications Reference Group to co-design solutions with industry.

    See also:

    SuperStream – implementation update

    Government USM rollovers

    We've continued to track our unclaimed super money (USM) remittance processing following the implemented fixes for problems affecting government rollovers. We're pleased to report more than 95% of USM remittances are now successful and the small number of issues we have seen were routine and resolved as part of our normal processes.

    This work is being driven by a special purpose team to provide longer term options to resolve some of the systemic issues identified during the USM release and is progressing well. We expect to deploy a program of fixes between now and the end of the calendar year to address most of these. You can view updates in the USM Rollovers issues that are under management document on Let's TalkExternal Link under 'supporting documentation, Rollovers v2.0'.

    Government contributions

    As at 30 September 2017, 94% or 184 funds have completed their government contributions implementation and are ready to receive payments or recoveries in the Standard. We are working with APRA and the small number of remaining funds to ensure they complete testing and implementation over the coming months. The majority of these funds are on schedule to complete their implementations by November 2017.

    We've received advice from some funds that they are receiving remittance and recovery notices (RARN) through ECI despite having already cutover to SuperStream. This is a result of how we determine a valid destination to send remittances and/or recoveries for individuals. CRT alert 064/2017 – Remittance and recovery notices issuing via ECI has more information.

    A post-implementation review is currently underway for industry feedback on the readiness, implementation and testing process for the government contributions release. A report will be prepared by late October and shared with industry through our various forums.

    Error response messaging

    All but two funds have completed their error response messaging implementation. We are working with these funds to ensure they are compliant as soon as possible. The SuperStream Technical Committee and the Continuous Improvement Working Group will continue to track consistency and effectiveness of error response messaging across industry.

    Where to send your SuperStream enquiries

    To ensure your transition to SuperStream is smooth and your experience interacting with us is as efficient as possible we've provided the following contact points.

    • For issues sending or receiving a data file via SuperStream, contact your solution provider and/or gateway in the first instance.
    • Alternatively, contact one of the following:

    SuperStream Standards

    • Contact the SuperStream Standards mailbox SuperStreamStandards@ato.gov.au for SuperStream enquires in relation to:
      • Data and Payment Standards
      • SuperStream releases and documentation (Rollovers and Contributions, MIG, BIG, User Guides etc.)
      • Industry Engagement Forum (IEF)
      • SuperStream Implementation Working Group (SSIWG)

    Super Enabling Services

    • Contact the Super Enabling Services mailbox SPREnablingServices@ato.gov.au for enquires in relation to:
      • SBR2 platform, SuperMatch, SuperTICK 3, Fund Validation Service (FVS)
      • Queries regarding errors in data messages (including EPF and Contribution messages).

    Super Client Relationship Team

    • Contact the Super Client Relationship Team (CRT) mailbox SuperCRT@ato.gov.au for enquires in relation to:
      • Fund and member queries, ATO contributions, recoveries and rollovers, Superannuation Complaint Tribunal and Fund Trustee Complaint cases as per current practice.
      • All other SuperStream related enquiries not covered above or any other general queries.

    Remember to include all details

    • To assist us to process your enquiry quickly remember to include all the relevant details:
      • name, organisation, direct contact number, email address.
      • the relevant part of the transaction process your enquiry relates to, for example: ATO to Gateway, Gateway to fund, fund to Gateway, Gateway to ATO.
      • nature of the error/error message, transaction ID, conversation ID (if applicable), date/time, screenshots etc.
      • member details relating to the transaction.

    See also:

    Update on future of fund reporting

    Member Account Attribute Service

    On 20 September, we hosted a walkthrough of the Member Account Attribute Service (MAAS) design for industry representatives. We are currently establishing the process to capture the initial population of MAAS data and will continue to consult with industry once scoping work is undertaken. Updates from this walkthrough will be published when available.

    Member Account Transaction Service

    Member account transaction service (MATS) business and technical documentation is now available:

    These locked down versions should be used to inform your build. Further changes to these documents would need to be of a critical nature.

    A MATS design walkthrough will be held later in the year.

    See also:

    Register for MATS transitional period to cutover webinar

    The next topic for our large APRA fund webinars will focus on the Member Account Transaction Service (MATS) and discuss the transitional period strategy to deploy and cutover to MATS.

    The webinar will be held on Wednesday 25 October 11.00am (AEDST). The session will run for approximately 45 minutes (30 minutes presentation and 15 minutes Q&A session).

    Unable to attend?

    If you missed our recent MATS webinar on 5 October and can't make the next MATS webinar on 25 October, a recording and related materials will be available to download soon after the sessions.

    Next step:

    See also:

    Unclaimed superannuation money

    Testing for section 20C notices and fund-to-ATO unclaimed superannuation money (USM) rollovers has now started and documentation is now available on Let’s Talk – SuperStream Readiness and ImplementationExternal Link. A summary of these new documents can be found under 'Latest NewsExternal Link'.

    Regular updates on progress with testing will be provided through our fortnightly implementation working group.

    In late September the updated draft of the Rollover User Guide v2.0 was published on Rollover Standard v2.0External Link under 'technical artefacts, checklists and guides' on the Software DevelopersExternal Link website.

    We can confirm that Eligible Rollover Funds (ERFs) will receive section 20C notices in SuperStream.

    • ERFs report in MCS as Provider Type "E"
    • ERF USIs can be certified in FVS as GROL2.0-X
    • ERFs will not receive government monies in SuperStream due to ATO system rules that will prevent government rollovers and contributions being distributed to ERFs.

    See also:

    • View the Let’s TalkExternal Link ‘supporting documentation’ – news archive (July 2017)
      • to download the updated USM design and readiness presentation
      • read the action items and business scenarios

    USM electronic reporting specification finalised

    Version 5.1.0 of the unclaimed superannuation money (USM) electronic reporting specification has been finalised.

    Use either version 5.0.4 or version 5.1.0

    You can use either version 5.0.4 or 5.1.0 for your 31 October 2017 and 30 April 2018 USM lodgments. However, you must include the eligible service period start date regardless of which version number you use.

    SLM account threshold updated to $6,000

    The threshold of a small lost member (SLM) account has been updated in version 5.1.0. to be less than the listed amount on www.ato.gov.au – this is currently $6,000. Even if you use version 5.0.4 you must pay USM for all SLM accounts below $6,000.

    Differences between versions 5.0.4 and 5.1.0

    The report specification version number has also changed to FUSMV005.1. Only one statement per day is to be lodged for an amendment or multiple statements for a given period. The unclaimed money day and service period start date field types have been updated to mandatory. Further details on these changes can be found in v5.1.0.

    Next steps:

    SHA annual statement run

    The superannuation holding account (SHA) annual statement run was completed on 19 September 2017. Correspondence started issuing within one week from this date.

    Clients with myGov accounts received their statements via their myGov inbox where they have selected this as their preferred channel.

    • Possible increase in member enquiries

    Individuals may contact funds directly requesting they claim any ATO held monies on their behalf.

    Surcharge assessment run – November 2017

    We are preparing for a surcharge assessment run to occur in November 2017. Correspondence and assessments generated are due to issue by 15 November 2017.

    DASP working holiday makers visa update

    Departing Australia Superannuation Payment (DASP) changes for working holiday makers have taken effect as advised in Super CRT Alert 050/2017 and the July Super Communique.

    DASP WHM transitional support ceased

    Funds should be aware the transitional support arrangements have ceased for DASP online applications that were submitted to funds and not processed by 30 June 2017.

    Funds were requested to send completed templates for unprocessed applications to us by 14 July 2017.

    Data was sourced from Department of Immigration and Border Protection (DIBP) and returned to funds to assist in determining any working holiday maker (WHM) implications.

    We provided responses to requests in most cases by 8 August 2017.

    DASP WHM visa data

    From 16 August 2017 submitted DASP applications are not available to funds for 14 days. This is to ensure that visa information is provided by applicants and intermediaries.

    During this 14 day period, we check with DIBP and make updates where required. Applications will be available for super funds to view from the 15th day after the application is submitted.

    Funds should contact the applicant directly if you have any questions regarding visa information provided by the applicant.

    See also:

    Transfer balance account report

    The transfer balance account report (TBAR) is used to capture information about superannuation amounts moving into and out of retirement-phase accounts. This allows us to record and track an individual’s transfer balance account and total super balance, and enables correct calculation of concessional contributions.

    By now you should have:

    • become familiar with your obligations relating to TBAR
    • started keeping records of transfer balance events which occurred from 1 July 2017.

    Transfer balance cap reporting

    The TBAR is now available to report:

    • events that affect the transfer balance account of your member
    • further information to calculate a member's total super balance
    • further information to determine a member's concessional contributions amount.

    Event based reporting

    Providers will need to report events relating to an individual's transfer balance account at the time they occur. Total super balance and concessional contributions information is reported annually.

    Reporting can commence in October 2017 and will need to start no later than 14 December 2017.

    Once a provider has started reporting, any further transfer balance account events will need to be reported via the TBAR within 10 business days after the end of the month in which the event occurred.

    A transitional approach is being used to assist self-managed super funds to move to an events based reporting framework.

    Exclusions from TBAR reporting

    Only certain events that affect a member's transfer balance account, total super balance or concessional contributions need to be reported in the TBAR.

    Events that do not need to be reported include:

    • pension payments
    • investment earnings and losses
    • when an income stream is closed because the interest has been exhausted

    TBAR and unclaimed super money

    A super provider needs to complete and lodge a TBAR using the event type 'Member commutation' (MCO) where:

    • a member has a transfer balance account
    • an amount of their retirement phase income stream becomes unclaimed super
    • the unclaimed super component is transferred to unclaimed super money (USM).

    A resulting debit will occur in the member’s transfer balance account reflecting the amount of the USM lump sum. 

    Next steps:

    See also:

    Modified APV reporting requirement for 30 June 2017 only

    The accumulation phase value (APV) is required to be reported to enable correct calculation of an individual’s total superannuation balance for 30 June of each financial year.

    Exit and administration fees

    The APV is net of exit and administration fees payable on accessing the superannuation interest and therefore needs to be taken into account in the valuation.

    Several funds will not be in a position to report the correct APV for 30 June 2017 because they are unable to exclude exit and administration fees from the reported value. This is due to varying interpretations of APV within the industry based on historical member account balance reporting. These fees are generally not material amounts.

    If the 30 June balance reported in the Member Contribution Statement is not the accumulation phase value, funds should report the APV separately in a transfer balance account report (TBAR) around the same time as MCS lodgement.

    Modified reporting obligation

    We accept that in this transition year that some funds may not be able to provide an APV that takes exit and administration fees into account. As a result we will be providing a modified reporting obligation for the 30 June 2017 accumulation phase value in the TBAR.

    Funds will not be required to report an APV for 30 June 2017 if the difference between MCS account balance and APV is limited to the sum of exit and administration fees that would apply if the account was to cease at 30 June 2017.

    Total super balance eligibility

    As you will be aware from 1 July 2017 the total super balance determines eligibility for:

    • the non-concessional contributions cap and the two or three year bring-forward period
    • the government co-contribution
    • the tax offset for spouse contributions
    • the segregated assets method to calculate exempt current pension income for SMSFs.

    Individuals who haven't had accumulation phase value reported

    For a very small number of members their accumulation phase value will be overstated by a small amount and so from November 2017 we will identify individuals that have not had an accumulation phase value reported to us and exceed a total superannuation balance threshold by small amounts.

    ATO to contact funds

    We will contact funds that have accounts for impacted individuals to confirm whether the MCS balance is the accumulation phase value or if not, request the correct accumulation phase value to be reported to us within 10 business days.

    The accumulation phase value will be reported via the transfer balance account report with event type being ‘APV’.

    Funds should advise their member

    Funds should advise their member of the additional reporting and that their total superannuation balance may have changed on ATO Online (myGov).

    Super reforms law companion guidelines updated

    The Treasury Laws Amendment (2017 Measures No. 2) Act which received royal assent on 22 June 2017, made some minor and technical amendments to the 2016 superannuation reform package. The following law companion guidelines (LCG) have been updated to reflect these amendments:

    The updated LCGs are being issued as a draft for public comment until 27 October 2017.

    Lost and unclaimed super postcode data released

    In September, we released the latest figures on lost and unclaimed superannuation accounts.

    As at 30 June 2017, there were over 6.3 million lost and ATO-held super accounts with a total value of almost $18 billion. The figures show that super funds hold $14.12 billion of lost super, with a further $3.75 billion of unclaimed super held by the ATO.

    By using myGov, members can keep track of their super, find lost or unclaimed super, and claim or consolidate accounts (if desired), to their preferred fund.

    A range of activities will soon start, including social media messages, to encourage individuals to check their lost and unclaimed super.

    You may hear from your members in the coming weeks as they find their super and make contact to update their details such as their addresses or jobs.

    To help you manage any enquiries, see our media release which reveals regional and demographic data for the combined accounts of lost and unclaimed super money.

    You can also help your members find their lost super by using SuperMatch2.

    See also:

    Remember to lodge your USM statements by 31 October

    You must lodge your unclaimed superannuation money (USM) statements on or before 31 October 2017 for the period 1 January 2017 to 30 June 2017. We encourage you to review the September Communique for a reminder of the more common errors, as well as how to lodge correctly and avoid processing delays for your statements.

    Lost Members Register October lodgment

    APRA regulated funds with more than four members are required to lodge a lost member statement (LMS).

    For the period 1 January 2017 to 30 June 2017, you must lodge your LMS on or before 31 October 2017.

    In your LMS you must report on members who:

    • are lost (or were transferred into the fund as a lost member)
    • are inactive (or were transferred into the fund as an inactive member)
    • have been found
    • have been transferred to another super provider as lost members since the last report, or the lost member's account has become unclaimed super money and has been paid to us or a state or territory authority
    • were reported in error and should be removed from the LMR or have their status amended.

    Where you have no members information to report you need to complete the non-lodgment advice section of the LMS.

    LMS specification v6.0.2External Link has been updated with the current small lost account threshold information.

    See also:

    Helping funds report unpaid super

    We encourage funds to notify us if you have concerns that an employer may not be meeting their superannuation guarantee (SG) obligations.

    Consider first contacting the employer to encourage them to check their records and ensure that their SG obligations are up-to-date.

    If you are still concerned, contact us and we will assess your notification and decide what action to take. This can include; monitoring the employer’s compliance, requesting information from third parties, or seeking information directly from the employer through phone calls, letters or visits.

    Notifying us and what to provide

    Contact us by email to advise us of an employer who may not be meeting their SG obligations. When notifying us you need to include the:

    • employer’s name and ABN
    • nature of the concern (e.g. super not paid, not enough super paid, or super paid late)
    • period (dates) involved
    • the number of employees affected

    How to notify us

    Email us at SGThirdPartyReferrals@ato.gov.au

    See also:

    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 – October 2017 SuperStream

    SuperStream

    Date from

    Co-Contributions Remittance

    Tuesday 10 October

    USM Remittance

    Friday 13 October

    SG Recovery

    Tuesday 17 October

    SG Remittance

    Tuesday 17 October

    SHAsa Remittance

    Thursday 19 October

    LISC Remittance

    Tuesday 24 October

    USM Remittance

    Friday 27 October

    Co-Contributions Recovery

    Tuesday 31 October

    LISC Recovery

    Thursday 02 November

    Table 2 –October 2017 ECI/paper

    ECI/Paper

    Week beginning

    First Home Saver Account Remittance

    Monday 09 October

    Co-Contributions Remittance

    Monday 09 October

    USM Remittance

    Monday 16 October

    USM Recovery

    Monday 16 October

    SG Recovery

    Monday 16 October

    SG Remittance

    Monday 16 October

    LISC Remittance

    Monday 23 October

    SHAsa Remittance

    Monday 23 October

    USM Remittance

    Monday 30 October

    Co-Contributions Recovery

    Monday 30 October

    USM Remittance

    Monday 30 October

    LISC Recovery

    Monday 06 November

    Table 3 –November 2017 SuperStream

    SuperStream

    Date from

    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 4 –November 2017 ECI/Paper

    ECI/Paper

    Week beginning

    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

    LISC Recovery

    Monday 04 December

    First Home Saver Account Remittance

    Monday 04 December

    Super consultation report

    The tables below summarise scheduled consultation activities for October 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 –October 2017 upcoming events – APRA-regulated fund consultation

    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

    5 October
    19 October

    SuperStream Implementation Working Group

    6 October

    SuperStream Continuous Improvement Working Group

    5 October
    25 October

    Member Account Transaction Service (MATS) webinar

    6 October
    27 October

    SuperStream Continuous Improvement Working Group

    11 October

    SuperStream Reference Group Telepresence

    11 September- Telepresence
    25 September -PHU

    SuperStream Technical Committee Telepresence – Canberra, Sydney, Melbourne, Brisbane and Hobart

    19 October

    Transaction Service Working Group

    Table 6 –October 2017 – upcoming super experience consultation

    Date

    Super experience consultation or engagement activity

    4 to 12 October

    ATO Open Forum on Super Changes, Lorne, Sunshine Coast, Melbourne, Penrith, Chatswood

    12 and 13 October

    2017 Tax Institute Melbourne Tax Forum

    17 October

    CPA Congress Melbourne

    Table 7 –October 2017 – upcoming Single Touch Payroll

    Date

    Super experience consultation or engagement activity

    2 October

    Bookkeepers Meeting

    4, 5, 10, 12, 18, 25 October

    ATO Open Forums

    4 October
    11 October

    Digital Service Provider Single Touch Payroll session

    5 October

    Readiness Working Group

    10 October
    11 October
    12 October

    Key Agent Client Seminars

    10 October

    Recruitment Agency Single Touch Payroll Lunch

    11 October

    ABSIA Conference

    11 October

    Government Tax Management Conference

    4 October
    12 October

    Key Agent Meeting

    12 October

    Software Developers Technical Working Group

    13, 16, 17, 25 October

    Employer Obligations Payroll Seminar

    16 October

    Accountants Technology Showcase Australia

    17 October

    FST Government Australia Conference

    19 October
    20 October

    TAPS Workplace Review – Payroll Expo

    20 October

    APA Conference

    24 October

    External Payroll Seminar

    26 October

    The Tax Institute – Corporate Tax Masterclass

    26 October

    Single Touch Payroll Technical Working Group

    26 October

    Single Touch Payroll Advisory Group

    26 October

    Legal & Compliance Ideas Exchange

    27 October

    Single Touch Payroll Design Working Group

      Last modified: 10 Oct 2017QC 53485