Reporting notional taxed contributions
A transferring fund will need to identify member accounts which are eligible for the grandfathering provisions that apply to a member's notional taxed contributions (NTCs) and advise the successor fund. The successor fund will need to ensure the grandfathering indicator is completed in the Member Account Attribute Service (MAAS) for these accounts.
If the member’s account is transferred before 30 June due to an SFT, a pro-rata NTC and Defined Benefit (DB) contribution amount must be reported. As the account was closed during the year, the transferring fund must also report a $0 Member Account Transaction Service (MATS) account balance (as this is a mandatory field).
In addition, if an account was open on 30 June, the transferring fund has an obligation to report an annual MATS balance.
For information on NTCs and defined benefit contributions, see Annual obligations and balance amounts protocol.
Division 293 tax deferred debt
If a transferring fund has received a notice from the ATO advising that a deferred debt account has been created, they should provide this notice to the successor fund to assist them in complying with their reporting obligations.
The successor fund should provide us with details of members transferred to them with a deferred debt account. The details should include the:
- name of the transferring and successor funds
- member name, account number and client identifier in both the transferring and successor funds.
An end benefit notice does not need to be provided in the case of an SFT. For more information, see Division 293 tax – deferred debt obligations for funds.