During the SFT process
Super funds should plan for continuous availability of a fund Unique superannuation identifier (USI) through the SFT process. Any limited-service period should prioritise minimal impact to employers and members. It should not result in any black-out period that prevents employers from making contributions, particularly around the quarterly super guarantee due dates.
Significant event notices and general communications are not always sufficient to prevent employer contributions being made during the transition period. It may not be feasible for employers to cease making such payments for their employees. This is particularly if the transition occurs close to a quarterly superannuation guarantee due date.
Failure to pay super to the right fund on time may disadvantage the employer as they must lodge a superannuation guarantee charge (SGC) statement and pay the SGC to us if they fail to do so. Funds should refer to missed and late super guarantee payments for the consequences for employers.
Note: Contributions made through any clearing house may be rejected back to the employer, as they cannot be redirected to a successor fund.
ATO-held contributions
For ATO-held contributions, funds should lodge an enquiry through our Super Enquiry Service to advise of the limited-service period so that we can supress ATO-held contributions.
Suppressions cannot be applied to processes such as:
- release authorities
- Departing Australia superannuation payment (DASP) applications
- early release of superannuation approval letters.
It is important that funds have the capacity to manage these during the transition period.
A limited-service period may also impact the transferring fund's ability to comply with a commutation authority.
Commutation authorities
Transferring funds:
- must ensure that commutation authorities with a due date that falls within the limited-service period are complied with before it impacts their ability to do so
- are encouraged to ensure that any excess transfer balance commutation authorities with a due date after the SFT date are complied with before the SFT.
Note: If excess transfer balance commutation authorities are not complied with, the member is likely to be in excess for longer and will pay more excess transfer balance tax. It is also likely that a commutation authority will be sent to the receiving fund. Funds should lodge an enquiry through our Super Enquiry Service for advice on commutation authorities issued to them which need to be complied within the 60 days before the SFT date.