More than one type of USM
Where a member of a super fund meets the definition of having more than one type of unclaimed super money (USM), the order of precedence is outlined in legislation as follows:
- non-member spouse or a deceased member
- member who is a former temporary resident identified on a section 20C notice
- member who has reached eligibility age
- small or insoluble lost member accounts
- inactive low-balance accounts.
Binding beneficiary nomination in effect
When a member meets all conditions for an inactive low-balance account (ILBA) but still has a binding beneficiary nomination in effect, it is not a relevant consideration. That is unless the member has made or amended it in the last 16 months.
Application under a shared overarching provider
The lost member tests must be applied at the member, not the account level. This concept also applies where the fund is structured with one overarching provider, but the provider administers 2 or more products – for instance, a public offer product and an employer sub-plan product.
Example: member with multiple accounts
ABC Superannuation is the overall super provider. Under it sits ABC Master Trust Fund and ABC Longevity Fund. A member, Mr Smith, has both an:
- active account with ABC Master Trust
- inactive account with ABC Longevity Fund.
When determining if he is a lost member, the fund examines Mr Smith's membership with the overarching super provider, ABC Superannuation. As one of his accounts is active, he is not a lost member.
End of exampleNotify members of inactive accounts
The fund should make the member aware of their inactive account. Funds should either:
- offer members the opportunity to consolidate the accounts where this is possible and desired by the member
- receive an indication from the member that they would like the account to be permanently excluded from being considered lost.
Members who satisfy permanent exclusions
Funds are not obliged to accept any member as being permanently excluded. They can change a member's status from being permanently excluded.
Members who are 65 years or older
If a member has reached eligibility age, the fund should make reasonable attempts to contact a member if:
- the fund has not received an amount for them within the last 2 years
- a period of 5 years has passed since the fund last had contact with them.
If the fund can't reasonably contact the member, they are required to assess the member under the unclaimed money provisions.
Example: member over 65 years old
ABC Fund receives one instance of returned mail for a member. The member has not received any contributions for 2 years.
ABC Fund's system show that the member last logged into their online account 2 years ago. They have now reached 65 years old.
As ABC Fund is concerned the member is at risk of becoming lost, they lodge a request to the ATO using the provision of details (POD) service for information about the member.
ABC Fund assesses the member and determines that they have not met the USM – general provisions. This is because they have had contact with the member within the last 5 years.
As the address returned by the ATO matches that held on ABC Fund's system, the fund believes that the instance of returned mail may suggest that the member can no longer be contacted at that address.
ABC Fund makes reasonable attempts to contact the member using the data returned from the ATO. The fund successfully contacts the member on the telephone number provided and verifies their current address.
The member is not USM – general. The member’s address has been verified in the past 2 years. Although the member has reached 65 years old, all other conditions have not been met.
End of exampleDASP paid to former temporary residents
Withholding tax on USM rolled over from the ATO
The USM rollover is still a Departing Australia superannuation payment (DASP) and is subject to the relevant DASP withholding rates. We will withhold the amount of tax relevant when rolling over to the fund.
Responses to section 20C notices
If you receive a section 20C notice for a former temporary resident, you must either:
- pay the balance of the account listed on the notice to us by 31 October, then report the account as closed via Member Account Attribute Service (MAAS) within 5 days of closing the account
- reject the notice, using one of the following reason codes
- member was not found (reason code SUPER.GEN.GEN.21)
- individual is no longer a member (reason code SUPER.GEN.GEN.22)
- member has a pending payment (reason code SUPER.GEN.RLVR.7).
Ensure lodgment has been successful
An unclaimed super money outcome response (USMOR) is sent within 3 working days whether a message is successful or unsuccessful. If not received, then the data message has not processed, and you should tell us.
Funds should also reconcile USM reporting account to ensure message and payment have processed.
- Use an identical payment reference number (PRN) on the payment as the message.
- If you get a data error message when you re-send it, check you have used the same PRN provided on the matching payment message. This needs to be used to ensure synchronisation occurs. PRNs are case and space sensitive.
- USM parent form lodgment and payment total amounts need to match.
- Ensure payment with a matching PRN is sent at the same time as the message to the ATO SuperStream bank account