Super Alert – 2 May 2025: Systemic Issues Insights Report, unclaimed super money, avoiding common errors in MAAS and MATS reporting   

Welcome to the weekly KHQ Super Alert. The newsletter is back after a two week break for the various public holidays. It has been a quiet fortnight with the regulators still in caretaker mode until after the election. The key news item is that AFCA has published its latest report in relation to the systemic issues it has identified when reviewing complaints so far this financial year.

AFCA – Latest Systemic Issues Insights Report

On 28 April 2025, AFCA released edition 6 of its Systemic Issues Insights Report, which relates to the first and second quarters of the 2024/25 financial year. The report details the systemic issues that AFCA has identified and reported to the regulators during this period.

In relation to superannuation, the report identified the following common systemic issues:

• ‘Enhancing engagement with AFCA’, which related to ‘concerns about whether the [relevant] financial firm had adequate resourcing and processes to meet AFCA’s requests for information within the required timeframes’;
• ‘System enhancements’ which related to two different funds – 50 complaints were received in relation to one fund whose ‘IT update caused technological issues that disrupted members’ access to their accounts’, and another fund has erroneously cancelled IP insurance for 1,500 members due to a system error;
• ‘Improving Disclosures’ which related to a fund issuing ‘defective notices’ during the death benefits claim staking process causing ‘incorrect or unclear information being provided to claimants’; and
• ‘Improving Timeliness of Superannuation Rollovers’ which related to a fund that did not process rollover requests within the regulatory timelines.

Click here and here for details.

ATO – Tips for avoiding common errors in MAAS and MATS reporting   

On 15 April 2025, the ATO published its tips on how to properly lodge ‘member account information through the MAAS’ and how to report ‘MATS transactions for a member’.

The ATO’s recommendations include:

• reporting ‘closed/open member accounts and any updates to these member accounts within 5 business days of when they occur…[to allow the ATO] to send Government contributions and rollovers to the correct destination’;
• ‘[i]f you don’t hold a Tax File Number (TFN) for a member, leave the field blank’; and
• ‘[u]se MAAS and MATS online services only for real accounts with accurate names and information. Do not submit dummy accounts to test system operations, as this will create real records’.

The ATO reminds trustees that ‘[i]t’s important your reporting is accurate, so [members] can make informed decisions’.

Click here for details.

ATO – Reporting on unclaimed super money and lost member

On 11 April 2025, the ATO reminded trustees of their obligations to ‘assess, report and pay unclaimed super money (USM) and lost member accounts by 30 April 2025’. The ATO clarified that members’ lost status must be assessed ‘at least twice a year’ and that unclaimed super monies, unclaimed super of former temporary residents, small and insoluble lost member accounts and inactive low-balance accounts must be reported and paid to ensure ‘accurate display of member accounts in online services’.

Click here for details.

Want KHQ Super Alerts delivered straight to your inbox each week? Click here to subscribe.