notes

SuperStream - will you be ready?
SuperChoice Services Pty Limited
February 2015
Disclaimer
 The information contained in this presentation is in no way intended as advice.
 References to particular superannuation funds or products are purely for the purpose of
providing realistic examples and should not be taken as a recommendation to use or not
use a particular fund, product or service.
 SuperChoice Services Pty Limited (SuperChoice) and PayClear Services Pty Ltd (PayClear)
are fully owned by CPS International Pty Ltd (CPS). PayClear is the holder of the
Australian Financial Services License (314357) which enables a non cash payments
service to be offered.
Agenda
 Superannuation snapshot
– SuperStream background
 SuperStream – will you be ready?
– Collecting USI and ESA data
– Common implementation problems
– Which funds are ready for SuperStream
• Who’ll be next
– Mandatory data for all members
• TFN
– SuperStream error messages
The evolution of superannuation
 Super first started in Australia around 1850. Some banks, large private companies & governments
started paying private pensions to their senior, long serving employees.
 1986 compulsory super up to 3% introduced into industrial awards.
 1 July 1992 employers would be required to make superannuation contributions on behalf of their
employees, into a company nominated fund – superannuation guarantee (SG).
• Super contributions were progressively increased between 1992-2002, from 3% to 9%.
• 2003 SG required to be paid at least quarterly
 July 2005 employee Choice of Fund introduced
 March 2012 SuperStream legislation passed - including progressively increasing super contributions
to 12% in the 2019 – 2020 FY
 September 2014 Legislation passed to delay the increase. The SG rate will not be at 12% until the
2025-2026 FY
 December 2015 Further updates to SuperStream expected
Superannuation facts
 By 2025 Superannuation assets are forecast to be $3.2 trillion, 120% of GDP

June 2013 $1.62 trillion
 The aggregate contributions during 2012-2013 were $115.3 billion (source ASFA Dec 2014)

~ 77% from employers
 Approximately 92% of employed people have super coverage (source ATO June 2008)
 Australia has the fourth largest superannuation economy in the world
 There are around 325 superannuation funds regulated by APRA
 There are over 530,000 self-managed super funds, regulated by the ATO
 Currently around $18.2 billion in lost super (ref: Aussie Super Finder)
 66% of retirees rely on the Government pension
 Today the average balance for retirees (60-64 yrs old) is:
 Male $197k
 Female $104k
SuperStream
 SuperStream is a part of the Government’s ‘Stronger Super’ reforms, intended
to address the deficiencies by introducing a data and e-commerce standard.
Other measures include:

increasing the SG rate to 12%

making it easier to consolidate members’ accounts
 The legislation passed through parliament at the end of June 2012
 The changes to the way data and contributions are delivered to super funds
came into effect in July 2014
– Employers with 20+ employees must be compliant with the standards by 30 June
2015
SuperStream terms
 Superannuation clearing house
–
A facility that disburses superannuation contribution payments and data from an employer to one or more
superannuation funds. A clearing house may be independent or owned by a financial institution.
 SuperStream Data Standard
–
The proscribed format and delivery mechanism for data and payments when delivered to a super fund
 FVS
–
Fund Validation Service: a register of all super funds, including information such as their USI, contact and
bank details
 Gateway
–
A hub that ‘channels’ contributions into a super fund, from multiple sources. Each fund must nominate a
Gateway. (The role of gateway operators is to route, switch and package data messages.)
 MIG
–
Message Implementation Guide: a document that sets out the contribution and registration message
specifications and requirements an entity MUST use to comply with the Superannuation Data and Payment
Standards
 Alternate File Format
–
An excel spreadsheet with over 130 columns that can be used in a transitional arrangement. The use of the
SuperStream alternative file format is optional, and is by mutual agreement between an employer and a
fund.
7
Data Standard
 A standard format for electronic payments

AS4 profile of the ebMS 3.0 specification in the government’s XBRL format.
XBRL
Formatted
data
ebMS
3.0
AS4
profile
<xbrli:identifier
scheme="http://www.abr.gov.au/abn">99965357136</xbrli:identifier>
<xbrli:segment>
<xbrldi:explicitMember
dimension="RprtPyType.02.06:ReportPartyTypeDimension">RprtPyType.02.06:Mess
ageSender</xbrldi:explicitMember>
</xbrli:segment>
</xbrli:entity>
<xbrli:period>
<xbrli:startDate>2013-02-14</xbrli:startDate>
<xbrli:endDate>2013-02-14</xbrli:endDate>
</xbrli:period>
</xbrli:context>
<xbrli:context id="RCR01">
<xbrli:entity>
<xbrli:identifier
scheme="http://www.abr.gov.au/abn">49425379391</xbrli:identifier>
<xbrli:segment>
<xbrldi:explicitMember
dimension="RprtPyType.02.06:ReportPartyTypeDimension">RprtPyType.02.06:Mess
ageReceiver</xbrldi:explicitMember>
</xbrli:segment>
</xbrli:entity>
<xbrli:period>
<xbrli:startDate>2013-02-14</xbrli:startDate>
<xbrli:endDate>2013-02-14</xbrli:endDate>
</xbrli:period>
</xbrli:context>
<xbrli:context id="FNDPYMNT01">
SuperStream - will you be ready?
 Being ready means providing all of the mandatory information, according to the
SuperStream data standards and using a SuperStream compliant service
provider
 If there are 20 or more employees in your organisation you must be sending
SuperStream compliant data and payments by 30th June 2015
 If you remit quarterly the ATO recommends that your Jan – Mar 2015 quarter
contributions are SuperStream compliant, as it’s your last opportunity to ‘test’
10
Collecting USI data
 a USI is a Unique Superannuation Identifier
– All APRA funds must have a USI for each super product
– USI has replaced SPIN on the Superannuation (super) standard choice form
(NAT13080 updated August 2014)
– Access to the USI Registry System is by AUSkey
– Funds are using their old SPIN or their ABN (with additional digits) as their USI
 Examples:
– AMP FLEXIBLE LIFETIME SUPER USI = AMP0195AU
– PRIME SUPER USI = 60562335823001 (ABN + 001)
11
Collecting ESA data
 an ESA is an Electronic Service Address
– An ESA is only required for s Self-Managed Superannuation Fund (SMSF)
– An ESA is now required on the Superannuation (super) standard choice form
(NAT13080 updated August 2014) for employees with an SMSF
– It’s the SMSF member’s responsibility to register with an ESA Service Provider
– The Service Provider may charge an annual fee
• The fee can be paid from the SMSF account
– The member will need to login to their chosen site to view their contribution
remittance details (when the ESA site is certified)
12
Collecting ESA data
FAQs for SMSFs
What happens if I have established a new SMSF and do not provide my employer with the necessary
information in the Standard choice form?
 If you do not provide your employer with all the required information in the Standard choice form
your employer does not have to accept the form.
 This is because your employer may not have all the information they require to send contributions
in accordance with the SuperStream standard.
 If your employer does not accept your Standard choice form, they may make contributions to their
default fund to ensure they comply with their super guarantee obligations.
 In the longer term, if your SMSF fails to comply with the legal requirements
necessary to receive contributions payments and messages through SuperStream,
we may apply a penalty to the SMSF.
https://www.ato.gov.au/Super/SuperStream/In-detail/What-you-need-to-know/SMSFs/SMSFs---theSuperStream-standard-for-contributions/?fb_locale=pt_BR&page=2#Frequently_asked_questions_for_SMSFs
13
14
15
16
Current ESA Service Providers
 Use this link to find a list of ESA providers:
https://www.ato.gov.au/Super/SuperStream/In-detail/Contributions/SMSF-messaging-service-providers/
From the ATO site:
“To help you register and obtain an electronic service address, we have published two
registers of SuperStream messaging providers:
 The first register includes providers whose services are open to all SMSF trustees.
 The second register lists providers whose services are restricted to existing SMSF
clients.”
17
The first register:
Register of SMSF messaging providers – open to all SMSF trustees
Provider name (the links below will redirect
you to a website)
Contact details
Australia PostExternal Link
13 76 78
[email protected]
Click SuperExternal Link
1300 834 535
[email protected]
ComputershareExternal Link
1800 675 269
[email protected]
Contributions HubExternal Link
1300 737 614
[email protected]
GBST Wealth ManagementExternal Link
(02) 9253 6513
[email protected]
KluiExternal Link
(02) 9931 6856
[email protected]
SMSF DataFlow External Link
1300 657 084
[email protected]
SMSFflow External Link
1300 650 135
[email protected]
SuperChoice Services Pty LimitedExternal Link
1300 659 456
[email protected]
Westpac QuickSuper SMSF Gateway External
Link
1300 131 764
[email protected]
18
The second register:
Provider name (the links below will
redirect you to a website)
Contact details
AMP SMSF SolutionsExternal Link
13 71 74
[email protected]
Ascend Self Managed SuperExternal Link
1300 049 727
[email protected]
BGLExternal Link
1300 654 401
[email protected]
Cavendish SuperannuationExternal Link
1800 808 354
[email protected]
Class SuperExternal Link
1300 851 057
[email protected]
Colonial First State Custom
SolutionsExternal Link
1800 113 116
[email protected]
ClearView Wealth Solutions
InvestmentsExternal Link
1800 023 549
[email protected]
ESUPERFUNDExternal Link
N/A
[email protected]
Macquarie Bank LimitedExternal Link
1800 806 310
19
Common implementation problems
 Lack of understanding of requirement
– Deadlines
– Data format
– SMSFs not providing ESAs
 No sense of urgency
– Do not expect to be set-up in time if you do nothing until June
– Penalties may apply for non-compliance
20
Which funds are ready for SuperStream
 As at 28th January 2015 there were 109 USIs cross certified, meaning
they are able to accept SuperStream data and payments, including:
– AMP
– IOOF
– MLC Masterkey Super
– Vision Super
– Macquarie Super
– Club Plus Super
– VicSuper
– Challenger Guaranteed Personal Super
21
Who’s next
 Scheduled to be ready in the next round include:
– Australian Ethical Retail Superannuation Fund
– Catholic Super
– Fiducian Superannuation Service
– First
– Russell SuperSolution Master Trust
– Australian Catholic Superannuation & Retirement Fund
– Statewide Super
– Taxi Super
– Future Super
– Grosvenor Pirie Super
– Nestle Australia Group Superannuation Fund
22
Mandatory data for all members
New Member
Contributions
 What must be included
 What must be included
 Employee’s current legal name
 Employee’s current legal name
 Employee’s full address
 Employee’s address
 Address type
 Employee’s TFN
 Employee’s TFN
 Date of Birth
 Super contribution period start
date
 Gender
 Super contribution period end date
 1 = Male
 Contribution category and amount
 2 = Female
 A unique payment reference
number linking the data and
contribution
 3 = Intersex or Indeterminate
 0 = Not stated or inadequately
described
Data Standard - TFNs
https://www.ato.gov.au/Super/APRA-regulated-funds/In-detail/SuperUpdate/2013/SuperUpdate-September2013/?page=4
“TFN exemption codes
 TFN exemption codes are used by financial institutions, certain publicly listed companies, and their
investors, to notify us of exemptions from the TFN withholding tax that these entities apply to
interest, dividends and royalties. The exemption does not apply in the super system.
 Quoting an exemption code, or another number that is not a valid TFN, must be treated in the
same way as a failure to quote a TFN. If attempts to obtain the correct TFN from your member are
unsuccessful, you should:
–
automatically return any past member contributions and prevent acceptance of any future member
contributions
–
apply no-TFN contributions tax on any employer contributions
–
report a zero-filled field at "Member TFN" on the MCS, as you do when no TFN is held.
 We recommend all funds take action to:
–
identify exemption codes and other invalid numbers in their records to ensure they are not being treated
as if they were TFNs, and
–
check that systems and processes treat the quotation of exemption codes and other invalid numbers in the
same way as a failure to provide a TFN.”
SuperStream TFN ‘tools’
EmployerTICK: (Employer Tfn Integrity Check)
 a facility available to Employers to check the validity of an employee’s TFN
 EmployerTICK is an optional service
 to access the single service version (i.e. for an individual employer), you need to either
build the software or purchase EmployerTICK-enabled software
– A payroll provider or clearing house may act as your ‘agent’ and use EmployerTick on your
behalf
 EmployerTICK compares employee details received by the employer against information held in the
ATO client register and will return either a ‘matched’ or ‘unmatched’ response
– You can send a contribution or data with an ‘unmatched’ TFN
25
SuperStream TFN ‘tools’
EmployerTICK:
A response of ‘unmatched’ means the ATO is unable to match the employee details
provided to them with an appropriate level of confidence. The discrepancy could be caused
by either the employer (you) or the ATO having incorrect data.
The ATO may have been unable to match the employee details for one of the following
reasons:
•
the employee has provided you with incorrect details
•
the records the ATO hold are incorrect
•
the TFN has a protected, compromised or duplicate status on the ATO’s systems
•
the ATO’s data-matching system cannot establish a single match to a high enough
level of confidence.
26
SuperStream TFN ‘tools’
SuperTICK: (Superannuation fund Tfn Integrity Check)
 a facility available to super funds to check the validity of a member’s TFN
 In accordance with legislation and supporting regulations, funds are required to use the
SuperTICK service to validate initial registration information associated with first
employer contributions (and validate member information associated with rollover
requests).
 If an employer sends initial registration information with a first contribution to the
superannuation fund in the format of the standard, the fund is required to validate the
member details via the SuperTICK service within three days of receiving this
information, unless the employer has contributed to the fund for this member
previously.
27
SuperStream TFN ‘tools’
SuperTICK:
 The SuperTICK service will provide one of three possible validation messages to the fund
or sender:
– matched
– matched + corrected TFN
– Unmatched
 Matched: If the member details supplied are matched by the ATO with a high level of
confidence a ‘matched’ response will be returned through the system. A ‘Matched’
response confirms the TFN data held by the fund is correct.
 Matched + corrected TFN: Where the ATO matches the member details to a different
TFN than the one provided, the ATO will provide the fund with the corrected TFN. The
fund should update their records to delete the incorrect TFN and record the correct
number.
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SuperStream TFN ‘tools’
SuperTICK:
 Unmatched: A response of ‘Unmatched’ means the ATO was unable to match the
member details provided to ATO records with an appropriate level of confidence. The
ATO may have been unable to match the member details for the following reasons:
– your member has provided incorrect details
– the records held by the ATO are incorrect
– the tax file number has a protected, compromised or duplicate status on ATO systems
– the ATO data matching system cannot establish a single match to a high enough level of
confidence.
The ATO encourages funds to check the information with the member and revalidate at the
next available opportunity. Where the SuperTICK service provides an unmatched response
and the fund is validating member registration details associated with a first employer
contribution, the Superannuation Industry Supervision regulations require the fund to
contact the employer within five business days to confirm the member’s details.
Where a fund receives a corrected TFN, privacy regulations do not permit the number to
be provided by the fund to an employer.
29
SuperStream error messages
 There are 3 types of response messages:
– Information
• No action required
– Warning
• Action required
– Error
• Likely associated with a refund
 Information message examples:
– Member Registration message successfully received for processing
– Contribution Transaction message successfully received for processing
 Warning message example:
– TFN failed the TFN algorithm check
30
SuperStream error messages
 Error message examples:
– Employer supplied Member Id used in Entity ID is not unique
– Mandatory data element not supplied
– Data element contained an unexpected value
– ABN not known to the Message Receiver
– Bank State Branch is invalid or not known
– Account Number is invalid or not known
– Account Name is invalid or not known
– Member TFN required for this Contribution
– Eligibility issue preventing the contribution being processed. Contact Fund for
details
31
Allocation to member accounts
Contributions are to be allocated to member accounts:
“As soon as practicable but in any case not later than 3 business days after
both the contribution and the information have been received.”
 If the data is incomplete:
 The fund must ask the employer for correct/complete information within 5 days
 The employer must make all reasonable efforts to provide the correct/complete
information within 10 days of the request
 If a contribution can not be allocated the fund must refund the contribution to the
employer within 20 days of receiving it. (The contribution is then taken not to have
been made by the employer).
 The deadlines for SG contributions have not changed i.e. no later than the 28th
day of the month following the end of a quarter.
SuperStream flow
Employer
$$
Payroll
System
Fund Portal
Single
Remittance
&
Payment
Payroll
Officer
Service Provider
Or
Data
Fund
Gateway
Clearing House
SMSF
ESA
Bank a/c
$$
Questions?
For more information:
www.ato.gov.au/datastandards
www.Strongersuper.treasury.gov.au
SuperChoice:
Debi Phillips
Email: [email protected]
Phone (02) 8038 6827
Mobile: 0411 558 814
www.superchoice.com.au