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  • Super Communique September

    8 September 2017

    In this month's edition:

    SuperStream – implementation update

    Government USM rollovers

    We have continued to closely monitor our unclaimed super money (USM) remittance processing since we implemented fixes for the problems affecting government rollovers. We are pleased to report more than 95 per cent of USM are now successful and the small number of issues we have seen were routine and resolved as part of our normal processes.

    The work of the special-purpose team established to review issues with our USM design is progressing well. We expect to deploy a program of fixes between now and the end of the calendar year to address most of those issues.

    Government contributions

    By the end of August, approximately 83 per cent (or 175 funds) had completed testing and were ready to receive government contributions in the SuperStream standard.

    We are working with the remaining funds to understand their risk mitigation, testing and implementation plans. We expect the majority of these funds to be on board within the next three months.

    Error response messaging

    At the end of August, all but two funds reported they have completed their error response messaging implementations. The SuperStream Technical Committee and the Continuous Improvement Working Group will continue to monitor consistency and effectiveness of error response messaging across industry, and we are working with the late funds to ensure they are compliant by mid-September.

    Industry can soon switch off Rollovers version 1

    As at 8 September 2017 the fund details register shows all active USIs required to update now have Rollovers version 2 certification (ROLL2.0-X).

    Funds can now start planning to switch off Rollovers version 1 functionality.

    Next steps:

    See also:

    More than 600 attend SuperStream industry engagement forum

    The SuperStream industry engagement forum attracted 110 people to the Darling Harbour International Convention Centre in Sydney and more than 500 people via live stream.

    Did you take part?

    Complete our survey to help shape future events and improve the way we communicate with you.

    It takes less than two minutes and your feedback will be completely anonymous.

    Next steps:

    Watch the video on demand

    You can watch the video recordings or download presentation slides and related documents. You can also watch video from other ATO live stream events.

    The Association of Superannuation Funds of Australia (ASFA) partnered with the ATO to host the event. It featured speakers from the ATO and industry, including a keynote address from James O’Halloran, ATO Deputy Commissioner Superannuation.

    Presentation topics included:

    the release of the SuperStream program benefits report

    the roadmap of change

    the ATO’s system improvements, and

    the future of fund reporting.

    There was also an industry Q&A discussion on working together for better member outcomes, a workshop titled ‘what does the SuperStream business-as-usual landscape look like (not live streamed), and a joint ATO/industry panel session on the APRA fund superannuation reporting transformation.

    Next steps:

    See also:

    Update on the future of fund reporting

    Transforming superannuation reporting

    We have committed to proceeding with the APRA fund superannuation reporting transformation, which includes the Member Account Transaction Service, or MATS.

    ATO Deputy Commissioner Superannuation James O'Halloran wrote to super fund trustees and key industry stakeholders on Tuesday 29 August about the decision.

    We have worked closely with the super industry to redesign the way large funds report member data to government. Key industry stakeholders, including peak industry bodies, were involved in the working group that developed and endorsed the high-level design for the new service. The industry partners then supported the decision to proceed with the MATS.

    This joint design considers the need to accommodate future policy changes and improve current reporting – including the Member Contribution Statement (MCS) – and a shift from annual to event-based reporting. The changes are designed to better meet the current and future needs of members, funds and government.

    The design builds upon the investment in SuperStream and supports the government’s 2016 Budget superannuation changes and the introduction of Single Touch Payroll.

    MATS is just one component of the APRA fund superannuation reporting transformation. The Transfer Balance Account Report, or TBAR, will be part of the transitional arrangements while industry works to design and implement MATS in 2018–19. Meanwhile, industry is working to build the Member Account Attribute Service, or MAAS, ready for use from April 2018.

    Member Account Attribute Service walkthrough

    On 20 September, we’ll host an invite only walkthrough of the MAAS design for industry representatives. We'll be reviewing the final design, answering questions and talking through system processing. If there are any updates resulting from this walkthrough we will publish them when they are available.

    The consultation period for the draft legislative instrument has now closed. We have collated your feedback and are now considering all comments.

    Draft MAAS documentation is now available on the Standard Business Reporting (SBR) websiteExternal Link. We’ll release a full set of additional and final MAAS artefacts on 14 December 2017.

    The ATO’s testing environment (EVTE) will be updated to include MAAS on 14 December 2017 to facilitate testing with digital solution providers.

    MATS technical documentation now available for feedback

    We’re seeking your feedback on the proposed design as captured in the draft business implementation guide and the message structure table. While we don't expect fundamental design changes at this stage of the co-design process, we would specifically like your input on problems or issues that you consider critical.

    You can view the documents and have your say at our Let’s TalkExternal Link page. Consultation closes 21 September 2017.

    Next steps:

    See also:

    Unclaimed superannuation money walkthrough

    In late July, we led a design walkthrough with key industry representatives covering the changes to section 20C notices and fund-to-ATO unclaimed superannuation money (USM) rollovers. Action items and business scenarios discussed during the session are now available on the SuperStream Readiness and Implementation page on Let’s TalkExternal Link.

    We are updating the Rollover User Guide v2.0 and will publish this in mid-September.

    Next steps:

    Unclaimed super money specification update

    In July, we updated the unclaimed superannuation money (USM) electronic reporting specification to make the eligible service period start date field mandatory. Version 5.0.4 is the current USM specification version, and we released a draft version 5.1.0 to include this change.

    You can use either version 5.0.4 or version 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.

    We will soon publish version 5.1.0 as final and we will notify you at that time. When we do, both versions 5.0.4 and 5.1.0 will be accepted as final and you can continue to use either version number for USM lodgments.

    Our next planned review of the USM specification will be after the 30 April 2018 lodgment.

    Next step:

    USM statements October lodgment

    Reminder: You must lodge your unclaimed superannuation money (USM) statements by 31 October 2017.

    With your help, we have seen fewer errors over the last two lodgment periods. Below is a reminder of the more common errors, as well as how to lodge correctly and avoid processing delays for your statements.

    It is important you forward this information to the relevant people in your organisation to ensure:

    • the supplier’s name and ABN reported on the statement match
    • the provider’s name and ABN reported on the statement match
    • the scheduled statement day is correct for this lodgment – this should be Tuesday 31 October 2017
    • you include the number of members reported and if there are duplicate members
    • that each member has the correct status.

    How to lodge

    • Only lodge one statement per ABN per day.
      • It’s good practice to lodge statements with the most members first to ensure these are processed without delay.
       
    • Although the USM statement is due on a specific date, you can lodge anytime from when the period ends – that is, any time after 30 June 2017.
    • Minimise the number of statements you lodge by collating as many member records as possible. This will help us to process your lodgments more quickly.
    • File creation dates should be different for each file. Our system cannot process two files with the same creation date because it sees the files as duplicates.
      • When lodging one statement per day, enter the lodgement date as the file creation date.
       

    The unclaimed money date is 30 June 2017.

    Scheduled statement day is 31 October 2017.

    Amendments

    If you discover an error, contact SDSuperProductFunds@ato.gov.au or use online services to confirm it has been processed before lodging an amendment. 

    When lodging an amendment, use the date you submit the amendment as the lodgment date, not the date of the original lodgment.

    Next steps:

    Deferral and revocation requests

    Lodgment and payment deferrals for temporary residents should be made before any other USM statements are lodged for that period.

    To request a lodgment and payment deferral for any USM component (for example small lost members, temporary residents) you must do so before you lodge any USM component for that period. You cannot, for example, lodge and pay for temporary residents and then request a deferral of small lost members and vice versa.

    If you receive a section 20C notice for a member who you believe has been incorrectly identified as a former temporary resident, you should lodge a revocation request as soon as possible, so we can investigate and revoke the notice if appropriate.

    Next steps:

    PAYG – payment summary clarification

    Some super funds have asked us to clarify the requirements for completing the PAYG payment summary – superannuation income stream form for members receiving a reversionary income stream.

    Specifically, there was confusion about Section A: Payee details and the following question:

    Death benefit (reversionary income stream): Is the payee less than 60 years of age and in receipt of a reversionary income stream where the deceased died at 60 years or over?

    To help you understand whether to answer yes or no to this question, consider the following example.

    • If the payee is receiving a reversionary capped defined benefit income stream and is under 60 years of age, and where the deceased died at 60 years or over, you must answer 'Yes' to this question.

    See also:

    New guidance material on deductions for APRA-regulated funds

    We have released guidance material on deductions available to APRA-regulated funds to support the addendum to Taxation Ruling TR 93/17. The material covers a range of superannuation fund expenses including mergers, SuperStream, websites and specific deductions for tax-related expenses.

    The information provides general guidance on deductions including examples of common expenses and how to apportion them. The guide aims to clarify some apportionment issues, such as:

    • What’s the difference between a general deduction and a specific deduction?
    • How do I apportion general administration expenses if a fund partly derives non-assessable income?

    For trust deed amendments, SuperStream and merger expenses, issues covered in the guide include:

    • revenue or capital characterisation
    • availability of the black-hole expenditure provisions under section 40-880 of the ITAA97
    • apportionment issues as outlined in TR 93/17.

    Next steps:

    Transfer balance account reporting readiness notification

    On Tuesday 5 September James O'Halloran wrote to large superannuation fund trustees asking them to provide information about when they plan to start their transfer balance account reporting (TBAR).

    This information will help us support you in transitioning to event based reporting.

    You should submit your readiness information via Let's TalkExternal Link by no later than Monday 18 September.

    What you need to do

    1. Complete the readiness template via Let's TalkExternal Link with an indication of the date(s) you expect to be ready to lodge your initial TBAR.
    2. Where the testing or readiness dates are different for each of your USI products, list them separately.
    3. Submit your readiness information to us via Let's TalkExternal Link by Monday 18 September 2017.

    Next steps:

    SuperMatch2 deadline for two-factor member authentication

    SuperMatch2 users must implement two-factor member authentication by 31 December. Administrators and intermediaries who provide a service to funds will need to remind them of this obligation.

    We added an addendum to the SuperMatch2 terms and conditions in December 2016. The addendum stipulated the requirement to have two-factor member authentication in place by 31 December 2017.

    In the lead up to this deadline, we will contact trustees who are using SuperMatch2 to confirm arrangements.

    If you anticipate any problems meeting this deadline, contact us as soon as possible.

    Next steps:

    See also:

    Small Business Superannuation Clearing House – transition project

    The Small Business Superannuation Clearing House service is being integrated into our Business and Tax Agent Portals in early 2018.

    The portals allow businesses or their agents to access a range of tax and super services in one place. This includes lodging tax returns and activity statements, and registering for goods and services tax (GST) and PAYG withholding (PAYGW) – all with one log on.

    Users will experience a change in the way they access the service, which will have a new look consistent with other ATO products. Our aim is to make this a smooth transition for all clearing house users by providing a range of help and support.

    We've begun to raise awareness of this change in our communications to the small business and tax professional communities. You may notice an increase in enquiries from your employer clients as we ramp up our communication.

    To help you manage these enquiries, we are preparing an information package for all large funds, which will include timelines of our proposed communication activities to various communities.

    Next steps:

    Small Business Superannuation Clearing House testing

    The test data conformance guide and the test strategy for the Small Business Superannuation Clearing House were published on the SuperStream Readiness and Implementation page on Let’s TalkExternal Link on 18 August.

    Clearing house testing will align with upcoming section 20C and unclaimed super money (USM) testing, which begins for gateways in October 2017. Funds involved in SuperStream government contributions testing will be approached to test for section 20C, USM and SBSCH testing.

    Next steps:

    External data breach – identity crime and the ATO response

    It is important for super funds to engage with us early in the event of a data breach, so we can reduce the risk of unauthorised lodgments and protect both members and employer clients.

    What is a data breach?

    As holders of personal identifying information, employers, tax intermediaries and super funds are at risk when clients’ personal information or records are accessed or viewed by unintended audiences.

    When a data breach has occurred, fraudsters may target different client identity information.

    The most common stolen identifier is the tax file number.

    While the nature of one data breach in isolation may be low risk, any additional breach may yield enough information to compromise an individual's identity.

    What can occur after a breach?

    When using a compromised client identity to transact with the ATO, a fraudster’s goal is usually to fraudulently obtain revenue by impersonating the individual.

    • Fraudulent transactions may be successful with the client being unaware their identity has been compromised.
    • Fraudsters may attempt to divert legitimate returns, lodge false returns and/or target APRA-regulated funds in an attempt to roll a client’s super into a fraudulently established self-managed fund.

    Fraudsters continue to change their tactics to exploit new vulnerabilities in systems and processes. It is therefore critical to work in partnership with various business areas internally and organisations externally to reduce the risk of fraud occurring.

    Identity crime and the ATO response

    There are four stages we apply when we are notified of a data breach: identify the scope of the breach (what was accessed and how many clients affected), assess the impacts with ATO products, apply protections and notify the client, and monitor accounts.

    Notifying us and what to provide

    Contact us immediately if you believe a breach has occurred regardless of how many clients might be affected. When notifying us you need to provide details of the:

    • means by which you believe a breach or suspected breach has occurred
    • alleged perpetrator (if known)
    • systems you believe have been accessed
    • information stolen – for example, client name, tax file number, etc.

    Next steps:

    • Contact the Client Identity Support Centre by  

    See also:

    Monthly super remittance and recovery processing schedule

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

    Table 1 – September 2017 SuperStream

    SuperStream

    Date from

    Co-Contributions Remittance

    Tuesday 05 September

    SG Recovery

    Tuesday 12 September

    SG Remittance

    Tuesday 12 September

    SHAsa Remittance

    Thursday 14 September

    USM Remittance

    Friday 15 September

    LISC Remittance

    Tuesday 19 September

    Co-Contributions Recovery

    Tuesday 26 September

    LISC Recovery

    Thursday 28 September

    USM Remittance

    Friday 29 September

    Table 2 – September 2017 ECI/paper

    ECI/Paper

    Week beginning

    Co-Contributions Remittance

    Monday 04 September

    USM Recovery

    Monday 11 September

    SG Recovery

    Monday 11 September

    SG Remittance

    Monday 11 September

    SHAsa Remittance

    Monday 18 September

    USM Remittance

    Monday 18 September

    LISC Remittance

    Monday 18 September

    Co-Contributions Recovery

    Monday 25 September

    LISC Recovery

    Monday 03 October

    USM Remittance

    Monday 03 October

    Table 3 – October 2017 SuperStream

    SuperStream

    Date from

    Co-Contributions Remittance

    Tuesday 10 October

    USM Remittance

    Friday 12 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 4 – 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

    Super consultation report

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

    Date

    APRA-regulated fund consultation or engagement activity

    15 September

    SuperStream Continuous Improvement Working Group

    4 September

    Transaction Service Working Group - design session

    7 September
    21 September

    SuperStream Implementation Working Group (formerly Contributions Implementation Working Group

    13 September (Sydney)
    27 September (PHU)

    SuperStream Technical Committee Sydney

    20 September

    Walkthrough of Member Account Attribute Service (MAAS)

    1 September (Melbourne)
    20 September (Hobart)

    ASFA Roadshow presentation on future fund reporting and compliance

    Table 6 – September 2017 – upcoming super experience consultation

    Date

    Super experience consultation or engagement activity

    5 September (Sydney)
    6 September (Melbourne)

    User testing of the new suite of Division 293 amended Notice of Assessment templates

    Table 7 – September 2017 – upcoming Single Touch Payroll

    Date

    Super experience consultation or engagement activity

    1 September
    20 September

    ASFA Policy Roadshow

    1 September

    Ascender Payroll Breakfast

    4 September

    STP Readiness Working Group

    4 September
    6 September
    14 September
    15 September

    Meeting with MYOB

    5 September
    12 September
    14 September
    19 September
    20 September
    21 September
    28 September

    ATO Open Forum

    5 September

    Top 23 Industry Associations Webinar

    6 September
    22 September

    Key Agent Meeting

    7 September
    8 September
    18 September

    Key Agent Roundtables

    14 September

    Software Developer Technical Working Group

    14 September

    Government Tax Management Internal Conference

    19 September

    National Tax Liaison Group

    20 September

    STP Engagement Forum

    20 September

    STP APS Employer Readiness Forum

    21 September

    STP Advisory Group

    28 September

    STP Technical Working Group

    28 September

    STP Design Working Group

      Last modified: 11 Sep 2017QC 53258