1. Large fund diagnostic report
An information session for superannuation fund trustees and administrators
Graham Whyte, Assistant Commissioner, Superannuation
David Taylor, Fund Engagement Team, Superannuation
Wednesday 5 April 2017
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2. 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
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3. Poll #1 How familiar are you with the diagnostic reports?

4. Graham Whyte
Assistant Commissioner of Superannuation

5. A risk differentiation approach
Likelihood of non-compliance
Consequence of non-compliance
7% Key client
0% Higher risk
1% Medium risk
92% Lower risk
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6. High-level industry results
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 funds rated in 2014
Consequence of non-compliance
Likelihood of non-compliance
Classification
2016
2015
2014
Higher Risk (top right) 2
Key Client (top left) 17 18 14
Medium Risk (bottom right) 8
Lower Risk (bottom left)
227
236
225
Not Rated 5 16
TOTAL
251
261
265
UNCLASSIFED – Large fund diagnostic report

7. Poll #2 Do you think these results are sufficient evidence for the ATO to have ‘justified trust’ in fund member reporting?

8. Comparison of 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
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9. Percentage of funds met the benchmark3
Comparison of likelihood indicators
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
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%
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10. Areas for improvement
‘Open and Lost’ Member Contribution Statement (MCS) accounts
Timeliness of Unclaimed Super Money (USM)
Completeness of MCS
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11. 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
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12. 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
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13. David Taylor
Superannuation

14. A risk differentiation approach
A strategy and investment model for the ATO
A self-assessment tool for funds
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15. Poll #3 What is the risk differentiation approach?

16. Understanding your report
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
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17. Administrator report Administrator level view Assess performance
Identifies priorities for improvement
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18. Understanding your report
Page 1 Title page
Page 2 Fund results
Page 3 Reference table
Page 4 Definitions
For key clients, page
numbering will vary.
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19. Page 2 – your results Fund name and ABN Categorisation
Relative position in industry
13 indicators with green, amber or red score
What action to take
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20. Page 2 continued 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.
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21. Page 3 – reference information
SuperTICK
Employer contribution transactions compliant with SuperStream
Excess Concessional and Non-Concessional Contributions
Release Authorities
Members with Division 293 tax
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22. Page 4 – explanatory information
Insert image of page 4
Description of indicators
Definition of terms
Formulas
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23. Poll #4 Please rate the report in terms of its usefulness to your business

24. Questions

25. For more information LargeFundDiagnostic@ato.gov.au
/atogovau
@ato_gov_au
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26. Exit survey