ASFA Action, Issue 527, 6 March 2014
In this issue:
- SuperStream and SMSFs
- SMSFs and early-release schemes
- ATO data for deceased people and members over 65 New Division 293 tax and DB members regulations
- Re-launch of the ASFA Super Guru website
SuperStream standards: are you ready to receive self-managed superannuation fund details?
The Australian Taxation Office (ATO) has recently written to inform trustees of self-managed super funds (SMSFs) with links to employers with 20 or more employees about the changes to processing super contributions under SuperStream.
The letter advises trustees that SMSFs preparing to receive SuperStream contributions from employers with 20 or more employees will need to provide employers with the following information by 31 May 2014:
- the SMSF’s Australian business number (ABN)
- the SMSF’s bank account details
- electronic service address.
Employers may need to collect and store this SMSF information in order to prepare for its future integration into their SuperStream solution. There is no prescribed format for providing this information. The ATO asks employers to support various channels, including emails, to receive this information. Employers are also encouraged to talk to their Human Resources (HR) representatives or payroll-solution provider about how to store and integrate the new data within their HR or payroll software.
An updated Choice form will be released in the coming months. New nominations of an SMSF as the choice of fund will need to include their ABN, bank account details and electronic service address in this form to support employer contributions made using the SuperStream standard.
For more information about SuperStream, visit the ATO’s SuperStream webpage.
SMSFs: penalties for early access promoters
Of relevance to SMSF trustees and administrators, the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Bill 2014 is before the Parliament. Among other things, this omnibus bill amends:
- the Superannuation Industry (Supervision) Act 1993, to provide that a person must not promote a scheme that has resulted in a payment being made from a regulated superannuation fund, other than as prescribed by payment standards, imposing a civil penalty for any contravention
- Superannuation Industry (Supervision) Act 1993 and Taxation Administration Act 1953, to provide the power to give directions and impose administrative penalties for contraventions relating to self-managed superannuation funds.
The bill can be found on the Parliament of Australia website.
ATO data for deceased people and members over 65
As part of the ATO’s strategies to assist in reuniting lost members with their super, the ATO has identified additional data for deceased people, and those members over 65 years of age not included in the most recent provision of updated address (POA) process, which commenced on 20 January 2014.
The ATO expects funds to do the following:
- In relation to deceased members, funds will be sent data regarding member details where the ATO has been advised that they are deceased. If the date of death is available, this will also be passed on to funds. Under Section 32 of the Superannuation (Unclaimed Money and Lost Members) Act 1999, it is a legislative requirement that the fund make reasonable efforts to ensure that the member’s beneficiary does indeed receive the benefit. Where funds are unable to identify or locate the beneficiary, they are required to send the money to the ATO as unclaimed super.
- Regarding accounts where data held by the ATO suggests that the member is aged 65 or over, data will be sent to funds to determine whether they should be reported and paid as unclaimed super money.
This data will be loaded into the Data Transfer Facility (DTF), formerly the Bulk Data Exchange (BDE), and can be downloaded from Monday 10 March 2014. As the data is only available for 21 days, the ATO encourages all super funds and administrators to participate where possible, and to download the information once it is made available.
ASFA members with enquiries regarding this process should contact the ATO by email to: CAS-LMR&USMProductTeam@ato.gov.au.
New regulations regarding Division 293 tax and the ATO clearing house
The Government has made regulations prescribing an interim method for calculating the amount of an individual’s ‘defined benefit contributions’ for the purposes of the ‘Division 293 tax’, which applies a higher rate of tax to the contributions of higher-income earners (broadly, those whose adjusted taxable income and concessional taxed contributions exceed $300,000 in an income year).
The interim method prescribed in the regulations is aligned with the ‘notional taxed contributions’ concept, currently used for tax purposes relating to excess contributions, and reported on funds’ Member Contributions Statements. Use of this method will enable the Commissioner of Taxation to determine an individual’s liability for the 2012-13 financial year (the first year for which the Division 293 tax applied). The Government will make separate regulations to prescribe an ongoing method for calculating ‘defined benefit contributions’ for Division 293 tax purposes for 2013-14 and later years.
In addition, the new regulations:
- update the lists of public sector superannuation schemes
- prescribe the ATO as an ‘approved clearing house’ for Superannuation-Guarantee purposes.
The regulation can be found here.
New-look Super Guru website to help people maximise their super
Today ASFA relaunched its consumer website, Super Guru, in order to make it easier for fund members to understand and get the most out of their superannuation. As part of the relaunch, we are encouraging all members to link their site to the new-look, updated Super Guru site.
Relaunching the independent Super Guru website is part of ASFA’s consumer strategy focus, as fund CEOs have told us that member engagement is their top priority. We know most fund members don’t pay much attention to their super until they are getting close to retirement, so the site aims to engage and help consumers before this stage of life. The relaunch is also in response to analysis of the key super-related information Australians are searching for.
The new-look site includes:
- new content, including information for people who are working casual or part-time hours, are self-employed, small business owners or super beneficiaries
- new checklists to make finding and consolidating super easier
- a fresh, easy-to-navigate layout and a new-look design
- calculators to help fund members determine how much money they will need in retirement, budget tools and insurance calculators
- hints and tips to help fund members maximise their super
- FAQs.
We will be sending a media release about the relaunch out today. To view the release, see the media section of the ASFA website.
For more information, contact the ASFA Marketing team.
