Email: Update on APRA’s new Data Collection Solution - 29 October 2019
(Note: This update has also been sent as DCS Subscriber Update #12).
In July 2019, APRA released the updated Implementation Plan for the new Data Collection Solution. This advised entities that APRA had extended the implementation timeline due to complexities identified in the design phase, additional scope, external dependencies as well as industry feedback. Since then, APRA has been continuing the technical build, receiving entity feedback about current and future submission methods and engaging with reference and working groups about the transition to the new solution.
A key challenge for APRA and the industry is the complexity of migrating all existing collections in their current form (which may create significant burden for some entities as extensive resubmission of past returns may be required), while ensuring the benefits of the new solution are realised.
APRA is now in a position to explore alternative implementation approaches for the new Data Collection Solution. APRA is working with industry bodies to engage representatives in focused workshops to seek feedback on the impact of continued reporting through Direct to APRA (D2A) beyond March 2020; and the preparation required for entities to change current processes for existing collections versus new and amended collections. The workshops will explore the benefits and impacts for entities of each approach, as well as a longer term perspective of regulatory needs in coming years.
APRA will confirm the implementation approach and timeline in early 2020 once this review is completed.
Continuation of D2A after March 2020
Given the extended implementation timeline, APRA will ensure that D2A remains available so entities can continue to meet their reporting obligations.
AUSkey, the existing authentication method, will be decommissioned by 31 March 2020. In order for entities to continue to access D2A beyond this time, they will be required to obtain a myGovID and be authorised to act on behalf of their entity in Relationship Authorisation Manager (RAM). They will also require a machine credential, which is similar to the current device, AUSkey.
APRA is working with the Australian Tax Office and in coming months will advise entities what they need to do to make the necessary changes to ensure continued reporting through D2A.
Availability of the test environment
APRA previously advised that the test environment for the new solution was expected to be available in the first quarter of 2020. Given the further revisions to the implementation timeline, the test environment is now expected to be released in mid-2020. APRA will provide a minimum of three months for entities to test returns in the new solution prior to go-live.
Future data collections and submission practices
APRA plans to collect more granular, detailed data in the future. One of the benefits of the new data collection system is that it will enable this approach. This means that not all future collections will be suitable for manual entry, and reporting entities will need to use file-based submission methods.
APRA’s recent survey of reporting entities showed that around three quarters of entities still complete their submissions manually, despite the availability of alternative file-based submission methods in D2A. APRA considers that this will need to change when data collections are updated in the future, and entities will need to take the opportunity to increasingly automate their reporting as manual reporting will not be sustainable.
We will provide you with regular updates as we implement the new Data Collection Solution. Further information can be found on the APRA website: APRA is replacing D2A.
Questions about APRA’s new Data Collection Solution may be emailed to the project team at email@example.com.