specification / software developers / September 2010 / UNCLASSIFIED
format / Audience / Date / Classification
Electronic Reporting Specification
Lost members statement (LMS) version 5.5
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UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - LOST MEMBERS STATEMENT (LMS)
CHANGES TO THIS VERSION OF THE SPECIFICATION
Changes between version 5.5 and version 5.4
General key changes:
- General wording changes to include reference to small and/or insoluble lost member accounts.
- All references ‘the Tax Office’ changed to ‘the ATO’
- All references to ‘magnetic media’ changed to ‘electronic storage media’
- Acronym added for:
–Australian Taxation Office (ATO)
–Unclaimed superannuation money (USM)
- Definitions added for:
–Lost member account (insoluble lost member account of unidentifiable members)
–Lost member account (small account)
- Section 1 has been updated to include:
–Date of effect of this version.
- Section 2 Legal requirements has been updated to include:
–Inclusion of an alert box to address where the reporting due date falls on a weekend
–Lost Members has been updated to identify which members are required to be reported to the ATO, including:
- Members who satisfy the definition of lost and do not meet the definition of small and/or insoluble
- Members who were previously reported as lost and have now been reported and paid to the ATO as unclaimed superannuation money (USM) (including small and/or insoluble lost member accounts and temporary residents).
–Previously Reported Members has been updated to include an alert box to clarify that small and/or insoluble lost member accounts must be reported as transferred (T) on the LMS where they have been reported and paid to USM.
- Section 3Reporting procedures has been updated to include:
–Information about AUSkey® under Using ECI
Changes to data records, values and definitions
- Provider identity data record
–Changes have been made to the field name Date of Report to provide clarity.Name changed to Period ending date.
- Lost member data record
–Changes have been made to the field code Member date of birth deemedfrom LM57 to L101 to reflect the correct code for the field name.
- Data field definitions
–Report specification version number updated in alert box.
–Member account balance field definition changed from ‘If the members current balance is zero then use the balance last reported for the member’to ‘If the members current balance is zero then use the value of 0000000001’.
–Changes have been made to the field name Date of Report to provide clarity.Name changed to Period ending date.Alert box included to provide further clarification on the period ending date.
–Inclusion of an alert box to advise that provider address information may be supplied to other superannuation funds in SuperMatch reports.
Changes to example data file structure
- Provider identity data record field name Date of Reportchanged to Period ending dateto provide clarity.
Changes between version 5.4 and version 5.3
Member account balance field definition changed from‘If the members current balance is zero then use the value of 0000000001’, to ‘If the members current balance is zero then use the balance last reported for the member’.
Changes between version 5.3 and version 5.2
General key changes
- General wording changes to allow for consistency and clarify information.
- Section 5 Example of data file structure diagramincluded.
- Electronic storage media is no longer a valid method for Lost Member Statement (LMS) lodgment.
- In section 5File Contentinformation has been updated to show that multiple providers in the same transmission must all have unique TFNs.
- In section 5 Provider identity data record, must be at provider level not product level (unless each product has a separate TFN).
Changes to data records, values and definitions
- Supplier data record 1
–The field nameSupplier number has been changed to Supplier Australian business number (ABN)
- Lost member data record
–The field name Member familynamehas been changed to Member surname or family name.
–The field name Member first namehas been changed to Member first given name.
–The field name Member other name has been changed to Member second given name.
–Member account balance cannot be zero. Alert box added to Member account balance definition to provide clarification.
–The field name Member previous family name has been changed to Member previous surname or family name.
–The field name Member previous first name has been changed to Member previous first given name.
–The field name Member previous other name has been changed to Member previous second given name.
–The field name Beneficiary 1 family name has been changed to Beneficiary 1 surname or family name.
–The field name Beneficiary 1 first name has been changed to Beneficiary 1 first given name.
–The field name Beneficiary 1 other name has been changed to Beneficiary 1 second given name.
–The field name Beneficiary 2 family name has been changed to Beneficiary 2 surname or family name.
–The field name Beneficiary 2 first name has been changed to Beneficiary 2 first given name.
–The field name Beneficiary 2 other name has been changed to Beneficiary 2 second given name.
Acronyms
Acronym / ExpandedABN / Australian business number
APRA / Australian Prudential Regulation Authority
ATO / Australian Taxation Office
ECI / electronic commerce interface
LMR / Lost Members Register
LMS / Lost members statement
MIPS / MediaInformation Processing Services
NLA / non-lodgment advice
RSA / retirement savings accounts
SMSF / self managed superannuation fund
TAN / tax agent number
TFN / tax file number
USM / unclaimed superannuation money
Definitions
Several key terms are used in this specification:
Term / DescriptionMember / For the purpose of this document, a member is defined as a member of a superannuation fund or an approved deposit fund or the holder of a retirement savings account (RSA).
Lost member / A lost member is a member of a superannuation fund who:
- is an inactive member – they are inactive if they joined, as a standard
employer-sponsored member, more than two years ago, and there havebeen no contributions or rollover amounts in the last five years, or - transferred from another superannuation provider as a lost member and you haven’tfound or been advised of a new address, or
- cannot be contacted – you may not have been advised of your member’s address or mail sent to your member’s last known address has been returned unclaimed. If one piece of mail is returned to you unclaimed by the member, you may choose to report the member as lost. However if you receive two pieces of mail unclaimed by the member you are required to report the member as lost.
- the fund or the member has confirmed the member's current address within the past 2 years or is permanently excluded.
- are an inactive member of the fund, but indicate by a positive act, for
example, deferring a benefit, that they wish to remain a member, or - contact you and indicate that they want to remain a member, or
- are a member of an SMSF.
Supplier / This is the organisation (as authorised by the provider) that gives the statement on behalf of the providers being reported for. A supplier may be a superannuation administrator, tax agent, accountant, employee of the provider, or any other properly authorised legal entity. It may also be the provider itself lodging on its own behalf (for example, a superannuation fund or its corporate trustee).
The supplier is the organisation who has lodged the Lost members statement(LMS)with the Australian Taxation Office (ATO).
Provider / Theobligation to report is imposed by the legislation upon a superannuation provider in respect of a particular superannuation plan. The definition of ‘provider’ in the legislation is therefore:
- for a superannuation fund, the trustee of the fund, or
- for an approved deposit fund (ADF), the trustee of the fund, or
- for a RSA, the RSA provider.
Non-lodgment advice / A non-lodgment advice should be reported on the LMSif:
- there are no new lost members to report, or
- any members taken to be lost and not previously reported as lost have:
–their account balance is nil, and
- any members previously reported as lost:
–were not transferred out, or
–were correctly reported as lost.
Unclaimed superannuation money (USM) / An amount payable to a member of a fund is taken to be unclaimed superannuation if:
- the member has reached eligibility age (currently 65 for both male and female), and
- the superannuation provider has not received an amount in respect of the member (and in the case of a defined benefits superannuation scheme, no benefit has accrued in respect of the member) for at least two years, and
- after the end of a period of five years since the superannuation provider last had contact with the member, the provider has been unable to contact the member again after making reasonable efforts.
- a payment split applies to a splittable payment in respect of an interest that a person has as a member of a fund, and
- as a result, the non-member spouse (or his or her legal personal representative if he or she has died) is entitled to be paid an amount, and
- after making reasonable efforts and after a reasonable period has passed, the superannuation provider concerned is unable to ensure that the non-member spouse or his or her legal personal representative, as the case may be, receives the amount.
- the member has died, and
- the superannuation provider determines that, under the governing rules of the fund or by operation of law, a benefit (other than a pension or annuity) is immediately payable in respect of the member, and
- the superannuation provider has not received an amount in respect of the member (and, in the case of a defined benefits superannuation scheme, no benefit has accrued in respect of the member) for at least two years, and
- after making reasonable efforts and after a reasonable period has passed, the superannuation provider is unable to ensure that the benefit is received by the person who is entitled to receive the benefit.
Lost member account (small and/or insoluble lost member account) / For the purposes of this document a lost member account in a fund is taken to be an insoluble lost member account if on the unclaimed money day:
- the member on whose behalf the account is held is a lost member, and
- the superannuation provider has not received an amount in respect of the member within the last 5 years, and
- the superannuation provider is satisfied that it would never be possible for the provider, having regard to the information reasonably available to the provider, to pay an amount in respect of the member, and
- the account does not support or relate to a defined benefit interest (within the meaning of section 292-175 of the Income Tax Assessment Act 1997)
- the member on whose behalf the account is held is a lost member, and
- the balance of the account is less than $200 on the unclaimed money day, and
- the account does not support or relate to a defined benefit interest (within the meaning of section 292-175 of the Income Tax Assessment Act 1997)
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UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - LOST MEMBERS STATEMENT (LMS)
Table of contents
1 Introduction
About lost members
Who should use this specification
Lodging via the internet
2 Legal requirements
Reporting obligations
Lost members
Non-lodgment advice (NLA)
Previously reported members
Retention of information
Privacy
Extension of time to lodge
3 Reporting procedures
Reporting for the first time
Test data
Reporting via the internet
Using ECI
Installing ECI software
Backup of Data
4 Physical specifications
Electronic storage media
5 Data file format
File structure diagram
File content
Sort order of the report data file
File structure example
Example
6 Record specifications
Header records
CR, LF and EOF markers
Description of terms used in data record specifications
Supplier data record 1
Supplier data record 2
Supplier data record 3
Provider identity data record
Lost member data record
Employer data record
File total data record
7 Data field definitions and validation rules
Reporting of address details
Reporting of name fields
Field definitions and edit rules
8 Example of data file structure
Data records
Supplier data record 1
Supplier data record 2
Supplier data record 3
Provider identity data record
Lost member data record
Employer data record
File total data record
9 Algorithms
TFN algorithm
ABN algorithm
10 Notification of errors
Outcome of lodgment report
Reporting amendments
Members reported in error
11 More information
Contacting us
Media Information Processing Services (MIPS)
ECI
Provider enquiries
Software developer home page
12 Checklist
UNCLASSIFIED / 1UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - LOST MEMBERS STATEMENT (LMS)
1 Introduction
About lost members
All superannuation providers, with the exception of a self managed superannuation fund (SMSF), need to lodge regularreports with the ATO providing details of their lostmembers. The ATO uses these details tokeep the Lost Members Register (LMR) current.
The LMR is a central register of lostsuperannuation fund members and retirement savings account (RSA) holdersmaintained by the ATO. The ATO provides ways for members to determine if they have superannuation benefits that are on the LMR and then take action to re-unite the member with any of their identified lost superannuation. These services are provided by the ATO through web, telephone and direct correspondence.
The information supplied will not update stored registration information held by the ATO. To update address details, contact details, preferred correspondence methods, and address for services of notice, utilise the Change of registration details process. For further information on the change of registration details process visit .
Who should use this specification
This specification is to be used in the development of software for the lodgment of electronic versions of any lost superannuation member information to the ATO. Only version 5.5 of the electronic reporting specification will be accepted from 1 January 2011.
Lodging via the internet
Superannuation providers can lodgestatements online through the free electronic commerce interface (ECI) software.
Lodging online will:
- reduce paperwork
- provide a secure way for reports to be lodged
- allow reports to be lodged after hours
- provide an online receipt when the report is lodged, and
- ensure that all of the necessary fields to lodge the report have been completed, via in-built checks.
As of 1 July 2009 the ATO will no longer accept electronic LMS lodgments on electronic storage media.
2 Legal requirements
Reporting obligations
Under Regulation 6 of the Superannuation (Unclaimed Money and Lost Members) Regulations 1999, information about lost members is required to be reported within four months of the end of each half year.
The due dates for lodgment of lost member information are:
- For the half year ending on 30 June in a year – on or before 31 October in that year,
- For the half year ending 31 December in a year – on or before 30 April in the following year,
- If the Commissioner has granted an extension, on or before the extension date.
Where the due date falls on a weekend the date for lodgement will be the next business day
Lost members
Section 23 of the Superannuation (Unclaimed Money and Lost Members) Act 1999establishes the provisions for what information about lost members must be reported to the Commissioner of Taxation.
For each reporting period providers will be required to report:
- Any member who satisfies the definition of lost (on page iv) and hasnot been previously reported.
- Any member who has previously been reported as lost and has since:
–been successfully contacted or re-established contact
–indicated by a positive act that they wish to remain a member (an example of a positive act is a telephone call or written communication)
–been transferredto another superannuation fund or RSA
–been reported and paid to the ATO as USM (including small and/or insoluble lost member accounts and temporary residents), or
–been reported to a State or Territory authority as unclaimed money.
A non-lodgment advice (NLA) must be lodged where the provider does not have any members who are lost or have had a change of member status for a reporting period. This can be done on this report.
Non-lodgment advice (NLA)
NLAs are now required to be reported using this specification. If a provider has no lost, inactive, found, transferred or previously reported in error members to report for a period they are required to complete the relevant parts of the LMSand submit it to the ATO within the timeframes already defined.