Search
Close this search box.

Issue 538, 27 May 2014 

In this issue:

 

Changes to the SuperStream contributions data standards implementation arrangements 

On 26 May 2014, the Minister for Finance, Senator the Hon Mathias Cormann, announced the Federal Government is increasing flexibility for the superannuation industry, as it continues to make the necessary changes to implement the SuperStream contributions data standards. 

The changes, which give superannuation funds up to 1 July 2015 to meet the new standards, are reflected in the new data standards legislative instrument, which was registered today (27 May). This is the finalised version of the March 2014 further consultation draft legislative instrument. 

ASFA has strongly advocated for this change, as it will help facilitate a smoother implementation of the contributions data standard. 

The change removes the requirement that funds approach APRA to obtain approval if they will not be ready to receive contributions in the data standards format by 2 November 2014. Instead, they must notify the Australian Taxation Office (ATO) of a later compliance date. 

ASFA understands the process of notifying the ATO will operate as follows: 

This change means funds that are not ready by 2 November 2014 will no longer need to implement an interim solution from November 3 until the date the fund is ready. ASFA understands that these interim solutions involve costly, labour intensive, work-around processes. The fund will instead be able to focus on the core task of introducing a system that integrates the front-end data-receiving capability with back-end processes. 

From an ASFA perspective, this puts control of the implementation process back into the hands of individual funds. However, the superannuation industry will need to work co-operatively with employers and service providers, as well as with the ATO, to ensure that implementation progresses smoothly, and that full compliance by all parties is achieved by no later than 1 July 2015. 

Funds should not take this change as a reason to delay. All funds should be targeting an implementation date that is as early as possible so that the returns on the industry’s investment can start to flow to all participants in the system. ‘Prepare now, implement early, avoid the last minute rush’ should be the mantra of all funds. 

In advocating for the changes to the implementation process, ASFA considered that the implication for employers and providers of clearing services would be as follows: 

In addition, they will need to monitor the FVS for changes in destination fund capabilities.

These service providers will also play a critical role in assisting funds to test their solutions in a live environment, but prior to the fund updating their receipt capability on the FVS. 

What should funds be doing now? 

ASFA considers that, as a minimum, funds should: 

Fund communications with employers should also contemplate that the recipient employer may be a small employer, and therefore have access to the ATO’s Small Business Superannuation Clearing House. 

ASFA has been advised that a joint APRA/ATO letter will shortly issue to fund trustees setting out the changes and the expectations of trustees. 

For further information contact Robert Hodge. 

 

Deferral of SRS 711.0 SuperStream Benchmarking Measures 

APRA has announced that, in view of the developments in the SuperStream implementation announced by Senator the Hon Mathias Cormann on 26 May 2014, and in consultation with Treasury and the ATO, it is deferring the commencement of SRS 711.0 until 1 July 2015. APRA is writing to all trustees today (27 May) to inform them of this decision, and to advise them of its proposal to consult further with the industry regarding the content of SRS 711.0 later in 2014. 

 

Search
Close this search box.
Search
Close this search box.

Logged in as

Most recent