Treasury released the exposure draft Regulation which proposes to amend the SIS Regulations so that, from 1 July 2015, a default fund of an employer that receives contributions data which relates to another superannuation fund must pass the contributions data on to the correct fund.
The effect of this is that each fund that offers a MySuper product must provide a service so that an employer who has chosen the fund as their default can deliver all contributions data to a single location and be certain that all data will be routed to the right destination, whether that is the default or any other superannuation fund (pass-through).
A number of default funds already provide a similar service via a data and payment clearing service offered to employers.
A default fund offering a transitional “portal” solution that does not currently have the capacity to ensure the delivery of all of a default employer’s contributions (including that relating to other superannuation funds), will be required to:
- develop such a service; or
- outsource the delivery of such a service to a third party provider; or
- facilitate and encourage the use of data clearing via their nominated gateway provider with direct payments by the employer to target funds.
This may be achieved by including a clearing capability in the portal or by means of an alternative service that allows a default employer to deliver contributions data to a single location from which it is routed to the correct fund.
The closing date for submissions is Monday, 1 September 2014.
There were no cases of interest for this period.