Industry Engagement Forum 29 August 2017 Questions and Answers Please note responses are correct as of October 2017

Question Response Hi, interesting data on benefits - what's the source of the savings to super funds data? The sources are a variety of direct Fund reporting to APRA and analysis of a number of core processing functions of Funds. This analysis was then tested with a sample of funds to assess a level of confidence on assumptions and calculations.   Where is the Roadmap published? And how often is it updated? The Roadmap is published to ato.gov.au and will be published every 6 months with next version due in December 2017. The Roadmap covers 2018, do you have an idea on when this will be extended to 2019? The 2019 year will be covered in the next update in December 2017. When can industry move off version 1 rollovers? All funds should now be using Rollovers V2. The September 2017 Super Communique advised funds that they could start turning off support for V1. Any fund or service provider who has not already done so can now turn off their Rollovers V1 system. Senders/Funds should note that any V1 messages will no longer be supported, able to be received or processed by the receiving party and most likely result in the data message being rejected. How will non-conformance with SuperStream be managed, for example error response messaging? ATO’s general approach for managing non-conformance of SuperStream is to work with funds that are late to understand their implementation risks, impacts and revised implementation plans. Where non-conformance or inaction extends beyond 6 months, our compliance area or APRA will be notified to support the funds to come on board. With regards to errors we are seeing with invalid inbound error response messaging into the ATO, funds are being notified of errors and are required to consider the extent to which any of these errors need to be reported to APRA. Funds are also required to provide ATO with details of when any confirmed issues are expected to be resolved. UNCLASSIFIED – IEF 29 August 2017 Questions & Answers

Question Response What is the status of industry readiness for G2B contribution changes? We are working closely with APRA and the small number of remaining funds to ensure they complete outstanding testing and implementation over the coming months. The majority of late funds are on schedule to complete their implementation by November 2017. The ATO has contacted APRA to notify them of the funds that are late.   As at 30 September 2017, testing (and production deployment) had been completed with 94% of industry who were required to implement government contributions. What is the readiness of industry for section 20C and USM? Testing for this release commenced with Gateways in late September and is scheduled to commence for funds from mid-October 2017. Over 130 funds have indicated that they will be ready to receive s20c notices in the Standard by the February 2018 timeframe. 165 funds have indicated they will be ready to submit USM back to the ATO through the standard by this April 2018 due date. For the section 20c & USM changes can you please confirm the readiness compliance dates? Funds should aim to have their s20C solution implemented by the middle of February 2018 to take advantage of the first issue of s20C notices by the ATO through SuperStream. To be able to send a USM in receipt of these s20C notices, funds will need to have implemented their USM solution by 30 April 2018. Further information can be found at: https://lets-talk.ato.gov.au/25295/documents/58854 Do you have feedback from industry on the experience for those funds through the G2B testing process? We have received valuable feedback from industry with an overall significantly more positive response to contributions testing than USM rollovers. Feedback through a recent post implementation review with industry confirms the ATO’s test approach for Government contributions has provided a better client experience. Useful information has also been provided on the test process and test data used in the testing environment. UNCLASSIFIED – IEF 29 August 2017 Questions & Answers

Question Response What progress or actions have the ATO made in terms of employer compliance with contributions? When exempt funds are removed from the reporting data there are approximately 97% of employers who are SuperStream complaint. The ATO has a Fund referral process in place where Funds can refer an employer and we will take follow up action. SuperStream messaging has leveraged on existing ATO communication and assurance activities. Our compliance approach focuses on business size, digital capability and attitude to compliance.   Can you send a MAAS batch call containing a single request? Yes, a batched MAAS message can contain a single request (you can have a batch of one). We have some funds that are administered on legacy systems that are unlikely to handle the new technology requirements for MAAS and MATS. How will funds be able to report in this case? MAAS and MATS will be the new approved form for reporting of member information and contributions data. The legal framework is being updated to align with this and our expectation is that APRA-regulated funds will report through the new systems. There will be an extended cutover period for funds to move to the new reporting services. We will also work closely with funds during their readiness and implementation to provide additional support and information as required. We will provide further information and contact details as we move closer to the readiness phase. UNCLASSIFIED – IEF 29 August 2017 Questions & Answers

Question Response Is the ATO addressing the order in which messages are processed for MAAS and MATS? For MAAS messages: Each status update overrides previous updates – it is only the latest status update that is required.   ATO systems will evaluate the timestamp included in a MAAS request and will not process a request (for the same member account) where a prior request has been processed with a later timestamp. This ensures that the latest snapshot of the member account as reported by the fund will be used for subsequent ATO processing. For MATS messages: ATO systems will reference the input field ‘message timestamp’ to ensure requests are processed sequentially as they are received. Practically however, for the MATS service, sequencing will only apply to those transactions that use an overwrite or ‘replace’ correction method. Sequencing for all other transactions is not of importance given the ATO utilises an aggregated annual figure for determinations/eligibility processing. In addition, a success response is provided for cancellation requests. For Retirement Phase Events, transfer balance cap determination processes run daily and will utilise all events received since last runtime; where a 'historic' event is received this is factored into the determination process. Where there is an unmatched record (ie MAAS not successfully matched in internal ATO matching, or MATS did not have a corresponding MAAS), these records are still saved in ATO systems. System processes will attempt to link the records together when subsequent MAAS/MATS information is received. Further details regarding the sequencing and matching of MAAS (SPRMBMINFO) and MATS (SPRMBMACCTX) messages can be found in the respective business implementation guides, available on the SBR website. UNCLASSIFIED – IEF 29 August 2017 Questions & Answers

Question Response What level of confidence do funds have with their MAAS & MATS implementation plans? After technical documentation was issued on 28 September 2017, all funds are assessing their build and implementation plans. The ATO will undertake an overall assessment with Funds and will monitor closely.   What kind of support will the ATO provide for DSPs not in the cloud? We will continue providing support to clients not in the cloud as we do now. Direct support is being provided to clients piloting the cloud services, which will transition to the same support model used for all service providers. If a service provider chooses the AWS environment as their endpoint to send messages to the ATO, will the ATO also send to the providers end point? The ATO will continue sending outbound transactions through the normal channel. The initial introduction of a cloud service provides increased availability and reliability for inbound transactions to the ATO. Outbound transactions through the cloud environment will be considered in future releases. On the work of the continuous improvement group, it was mentioned to date that the group were focusing on resolving USM issues. Are you able to provide an update on the progress made to date please? You can find the most up to date information on the progress of USM issues on our Let's Talk Page - https://lets-talk.ato.gov.au/SSRI. Follow this link and then go to Supporting Documentation, G2B - USM Rollovers. What are the ATO planning to do to provide industry confidence that it can manage the forecasted workloads we can expect with the introduction of B2G transactions i.e. MAAS and MATS reporting? Over the past few months there has been a significant focus on outlining the ATO's infrastructure and service plan for future system reliability and resilience. These plans are being shared regularly with Industry. Most recently a Superannuation Senior Industry round table was held on 20 October 2017. An extensive program of work is currently being undertaken in terms of our capacity to support the introduction of Single Touch Payroll (STP), MAAS and MATS. UNCLASSIFIED – IEF 29 August 2017 Questions & Answers

Question Response What will the ATO do to assist the capture of employer data? Where the ATO can identify that an employer is using a channel C solution or is not fully SuperStream enabled, the ATO will work with the employer to increase the level of data re-reported to align to the MATS reporting elements.   If we cannot split the employers contribution into the 4 types by 1 August 2018 what do we need to do? At this stage the only mandatory split is between Super Guarantee and Salary Sacrifice. If a trustee does receive and store a more granular level (such as voluntary and award) we expect the trustee to report to this level. Please confirm how the transition period will work? The Transitional Period covering the cutover from MCS and MATS is still under development. A Webinar to discuss the progress was held on 25 October 2017. What reporting elements or events will be made visible to members? The level of contribution detail made visible to a member on ATO online is under design. Does this mean that MATS will address refunds (when an employer contributes more than required due to late notification of employee data)? This is a really big deal for payroll and employers. The MATS design allows for adjustments to previously reported SG amounts via a delta (negative or positive). A cancel and re-report option is also possible. Will ATO systems cope with the significant increase in data handling from MAAS and MATS reporting? The ATO has assessed MATS and MAAS projected volumes and is confident it will successfully cater for the increased volumes of transactions. UNCLASSIFIED – IEF 29 August 2017 Questions & Answers

Question Response The granularity of contribution reporting may be an issue, as systems may not store this information or may not be provided by the employer. How strict will this requirement be with regards to fund compliance?   The ATO understands that a trustee may not receive the granular level of detail and in this instance the ATO will work with the employer to increase the level of detail - however if the trustee receives the data but does not currently store the information, it will need to adjust its system to do so in order to report correctly to the ATO. Separating old AMCS with new AMCS is an overhead for systems design. The ATO is working closely with industry to design a process for amending pre-MATS MCS. As a start the ATO has agreed to keep the AMCS process live for a further 3 years. With MATS amendments, and adjust /cancel design is in place. If I have already started reporting through MATS, will I still be required to submit a 17/18 MCS? Yes, a 2017/18 MCS will be required. What is the ATO / Industry planning to do to improve data quality? The ATO is mapping out a process to not only improve the data currently held on the systems but to collect the additional data required prior to the implementation of MAAS. The approach is being worked through in consultation with industry. UNCLASSIFIED – IEF 29 August 2017 Questions & Answers