large fund diagnostic report - australian taxation office · large fund diagnostic report graham...
TRANSCRIPT
Presented by
Australian Taxation Office
Large fund diagnostic report
Graham Whyte, Assistant Commissioner, Superannuation David Taylor, Fund Engagement Team, Superannuation
Wednesday 5 April 2017
UNCLASSIFIED – Large fund diagnostic report webinar 1
An information session for superannuation fund trustees and administrators
Contents
Introduction 5 mins
Large fund engagement approach 5 mins
ATO risk differentiation framework 10 mins
High level industry results 10 mins Understanding your report 15 mins
Questions and answers 15 mins
UNCLASSIFED – Large fund diagnostic report 2
Poll #1 How familiar are you with the
diagnostic reports?
Graham Whyte Assistant Commissioner of Superannuation
A risk differentiation approach
5 UNCLASSIFED – Large fund diagnostic report
Likelihood of non-compliance
Consequence of non-compliance
7% Key client
0% Higher risk
1% Medium risk
92% Lower risk
UNCLASSIFED – Large fund diagnostic report 6
Graph 1: Relative position of the 251 funds rated in 2016
Graph 2: Relative position of the 261 funds rated in 2015
Graph 3: Relative position of the 265 funds rated in 2014
Classification 2016
2015 2014
Higher Risk (top right) 0 0 2
Key Client (top left) 17 18 14
Medium Risk (bottom right) 2 2 8
Lower Risk (bottom left) 227 236 225
Not Rated 5 5 16
TOTAL 251 261 265
High-level industry results C
onse
quen
ce o
f non
-com
plia
nce
Likelihood of non-compliance
Poll #2 Do you think these results are
sufficient evidence for the ATO to have ‘justified trust’ in fund
member reporting?
8
Consequence indicators 2016 2015 2014
1 Membership 27,013,599 28,613,114 21,511,696
2 Contributions $ 91,229,279,953 $ 93,741,445,523 $ 82,557,036,147
3 Account Balances $ 1,399,424,807,762 $ 1,300,143,929,591 $ 1,194,438,187,438
4 Active MCS lodged 13,650,578 13,765,445 13,750,039
5 Inactive MCS lodged
18,901,544 18,706,511 19,345,967
6 Number of Lost accounts
580,455 1,223,338 1,308,237
7 Total value of Lost accounts
$ 11,315,422,964 $13,318,008,700 $ 13,161,657,731
Comparison of consequence indicators
UNCLASSIFED – Large fund diagnostic report
9
Percentage of funds met the benchmark3
Indicator 2016 2015 2014
TFN1 Personal Contribution without TFN 93.09% 90.87% 91.30%
TFN2 Correct TFN quoted 74.10% 69.73% 62.30%
TFN3 Duplicate TFNs 86.94% 85.43% 89.68%
TFN4 Non Individual TFNs 94.29% 94.09% 68.65%
MCS1 Timeliness of MCS lodgment 95.22% 95.79% 93.21%
MCS4a Completeness of MCS lodgment 66.83% 57.53% 38.83%
MCS4b Open and Lost MCS accounts 42.23% 41.76% 26.96%
LMR1 Lost members > 65 years 65.71% 63.77% 75.86%
LMR2 Lost accounts under $4,000 80.00% 51.21% 43.84%
LMR3 Timeliness of LMS 83.87% 88.89% 82.26%
USM4 Timeliness of USM 80.00% 87.04% 78.52%
PVA2 Timeliness of co-contribution remittance PVAs 77.96% 68.56% 69.70%
PVA4 Timeliness of LISC remittance PVAs 74.04% 70.27% 63.72%
Comparison of likelihood indicators
UNCLASSIFED – Large fund diagnostic report
10
Areas for improvement
UNCLASSIFED – Large fund diagnostic report
• ‘Open and Lost’ Member Contribution
Statement (MCS) accounts
• Timeliness of Unclaimed Super Money (USM)
• Completeness of MCS
What we’re doing to support funds
• Information Systems Risk Assessments and specific issue reviews
• Mergers and successor fund transfers • Early engagement to assist with: − Resolving voluntary disclosures − Identifying lost members − Addressing high value accounts, lost accounts
and USM
UNCLASSIFED – Large fund diagnostic report 11
Superannuation changes in 2017 and beyond
• ATO system incidents • SuperStream − Government rollovers in November 2016 − Government contributions from May 2017 − New fund reporting arrangements from April 2018
• Super Changes − Co-designing with industry
UNCLASSIFED – Large fund diagnostic report 12
David Taylor Superannuation
A risk differentiation approach
UNCLASSIFED – Large fund diagnostic report 14
• A strategy and investment model for the ATO
• A self-assessment tool for funds
Poll #3 What is the risk differentiation
approach?
Enhancements • Easier-to-read text and visual design • Comparative results over 3 years • Explanation of what the results mean • Commentary for Key Clients • Two indicator formulas revised • Tailored Administrator report
16
Understanding your report
UNCLASSIFED – Large fund diagnostic report
17
• Administrator level view
• Assess performance
• Identifies priorities for improvement
Administrator report
UNCLASSIFED – Large fund diagnostic report
18
Page 1 Title page Page 2 Fund results Page 3 Reference table Page 4 Definitions For key clients, page numbering will vary.
Understanding your report
UNCLASSIFED – Large fund diagnostic report
19
• Fund name and ABN • Categorisation • Relative position in
industry • 13 indicators with
green, amber or red score
• What action to take
Page 2 – your results
UNCLASSIFED – Large fund diagnostic report
Changes to indicators • Open and Lost MCS accounts − compares Lost Uncontactable members
reported in the LMS with the ‘open and lost’ MCS accounts
• Completeness of MCS lodgments − compares the members reported in the MCS
and in the Income Tax Return.
20
Page 2 continued
UNCLASSIFED – Large fund diagnostic report
21
• SuperTICK • Employer contribution
transactions compliant with SuperStream
• Excess Concessional and Non-Concessional Contributions
• Release Authorities • Members with Division
293 tax
Page 3 – reference information
UNCLASSIFED – Large fund diagnostic report
UNCLASSIFED – Large fund diagnostic report 22
Insert image of page 4 • Description of
indicators • Definition of terms • Formulas
Page 4 – explanatory information
Poll #4 Please rate the report in terms of
its usefulness to your business
Questions
/atogovau
@ato_gov_au
UNCLASSIFED – Large fund diagnostic report 25
For more information
Exit survey