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  • Eligible rollover funds

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    The law

    The Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020 was introduced to facilitate the closure of eligible rollover funds (ERF) and to enable the Commissioner to reunite amounts received from ERF with a member's eligible active account. The Bill does not rely on the existing concepts of unclaimed money day and statement day.

    You will find the provisions governing the payment of ERF account balances to the ATO in Part 3C of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (SUMLMA).

    Section 21A requires the trustee of an ERF to, on 1 June 2021, identify accounts:

    • held on behalf of members that have a balance less than $6,000 (an ERF low-balance account)
    • that have a balance of $6,000 or more.

    These accounts must be identified so they can be transferred to us by the relevant legislated due dates.

    The law also prevents new amounts being transferred to an ERF from 1 May 2021.

    Report and pay to us

    The trustee of an ERF must give us a statement of information for each ERF account in the approved form.

    You must report and pay the balance of an account for a person if all the following apply:

    • an account is an ERF account as at the end of 1 June 2021
    • the account is held on behalf of the person
    • the account is still an ERF account immediately before the earlier of when the payment is made or due and payable.

    The statement and payment for ERF accounts are due and payable by:

    • 30 June 2021 – for ERF low-balance accounts (i.e. ERF accounts with a balance of less than $6,000 as at 1 June 2021)
    • 31 January 2022 – for all other accounts held by ERF.

    If an account balance increases or decreases after 1 June 2021 it does not change the due date.

    Despite the legislated due dates, the trustee of an ERF can voluntarily report and pay the balance of any account to us from 1 June 2021 up until the day the statement and payment are due. Existing USM dates can be used to report ERF accounts to us.

    The ERF amount payable for the member is the amount that would have been payable if the member requested the balance held in the account be rolled over or transferred to a complying superannuation fund.

    Reporting solution for ERF

    SuperStream Rollover message implementation guide (MIG) v2.0 does not include a separate reason code for ERF accounts.

    Rollover MIG V3.0 will also not have a new code for ERF accounts as this is a temporary measure where ERF will be wound up when all accounts are transferred to us.

    All ERF are required to report accounts under code ‘Q – Small Lost Member Accounts’.

    We will identify accounts reported by ERF through their ABN, then record these accounts against code ‘M – eligible rollover fund' to ensure these accounts are identifiable within our systems.

    Family Law payment splits

    If ERF member’s account is, or could in the future be, subject to a family law payment split, you should take into account only the ERF member's entitlement to the payment remaining after any reduction by that payment split.

    The amount of any reduction as a result of a payment split is referred to as the non-member spouse amount.

    You must also pay the non-member spouse amount to us for the non-member spouse. This amount is due and payable at the same time as the amount payable for the ERF member.

    Payment by us

    If we are satisfied and it is possible to, we must pay the ERF amount we received for a person:

    • to a complying fund identified by the person
    • if the person has not died, to the person if
      • they have reached eligibility age
      • the amount is less than $200
      • they have a terminal medical condition.
       
    • if the person has died
      • to their death beneficiaries or legal personal representative
       
    • if none of the above applies
      • to an eligible active super account held on behalf of the person.
       
      Last modified: 07 May 2021QC 65598