Login
iscover
A major update to the SBSCH means perfect alignment between employees’ super details and those recorded by the ATO will be critical, says the SMSF Association.
Newsletter
Super Clearing House change to impact small businesses, SMSFs
18 March 2024
•
7 minute read
The ATO has implemented a pivotal update to the Small Business Superannuation Clearing House (SBSCH) which introduces SMSF bank account validation aimed at bolstering the precision and security of super contributions.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
This new feature affects all small employers using the SBSCH to pay super to employees’ SMSFs.
Mary Simmons, head of technical at the SMSF Association, said the validation process will require small employers using the SBSCH to ensure a perfect alignment between their employees’ SMSF bank account details and the corresponding fund bank account details recorded by the ATO.
"The validation will focus on the BSB and account number as registered under the SMSF’s Superannuation Role within ATO systems,” Simmons said.
“For any employee where there is no exact match, the SBSCH will not process their superannuation payment.”
To ensure employers are aware of this update the ATO is conducting a mailout campaign directed at small employers likely to be impacted by the new SBSCH SMSF bank account validation process.
Simmons said with SG obligations for the March 2024 quarter due no later than 28 April 2024, it is important for small businesses to be proactive.
“If you have small business clients using the SBSCH, it is important to urge them to contact their employees to confirm that the SMSF bank account they pay superannuation contributions to is the same as the SMSF bank account registered against the superannuation role with the ATO,” she said.
The regulator warned it is expecting an increase in calls from employees who are unsure how to check whether the bank accounts their employer makes super contributions to are the same as the ones registered with the ATO.
It added that should there be a need for an employee to amend SMSF bank details held by the ATO, it’s crucial to communicate these changes to all fund members as the ATO will issue email or text alerts to ensure all fund members are informed.
“Given the proximity of the next SG contribution deadline on 28 April 2024, it is important to take action well ahead of this date to prevent potential compliance issues,” Simmons said.
“Small employers delaying the review and update of their employees’ SMSF bank records risk facing SG shortfalls and potential penalties as there may be insufficient time to rectify a discrepancy.”
You need to be a member to post comments. Become a member for free today!
