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.
The SMSF Association has emphasized the significance of ensuring that employees’ superannuation details are accurately mirrored in the Australian Taxation Office (ATO) records following a significant update to the Small Business Superannuation Clearing House (SBSCH). This update introduces a verification process for SMSF bank accounts, aiming to enhance the accuracy and security of super contributions.
All small businesses utilizing the SBSCH for super payments to employee’s Self-Managed Super Funds (SMSFs) will be impacted. Mary Simmons, the SMSF Association’s technical expert, highlighted that small employers must align their employees’ SMSF bank details precisely with those registered with the ATO. The validation will scrutinize the BSB and account numbers associated with the SMSF’s Superannuation Role in ATO systems. Should there be any discrepancies, the SBSCH will not be able to process these superannuation payments.
To inform employers about this critical update, the ATO has initiated a mailing campaign targeting small businesses likely affected by the new validation process. With the Superannuation Guarantee (SG) obligations for the March 2024 quarter due by 28 April 2024, Simmons advises small businesses to act quickly. Employers are encouraged to verify the SMSF bank account details with their employees, ensuring they match those recorded by the ATO.
The ATO anticipates an increase in inquiries from employees uncertain about comparing the bank account details for their super contributions to those registered with the ATO. In instances where SMSF bank details need amending, it’s vital for these changes to be communicated to all fund members. The ATO will send notifications via email or text to keep all members updated.
Simmons stresses the importance of early action to avoid potential compliance issues, highlighting that any delay in reviewing and updating SMSF bank details could lead to SG shortfalls and possible penalties due to the tight timeline for rectifications before the next SG contribution deadline on 28 April 2024.
What You Need To Do
- Check and confirm SMSF bank details with your employees ASAP
- Anticipate ATO alerts for any changes. Stay informed.
Need Help?
Contact the TSP team for assistance on 49 264155 or email admin@tspaccountants.com.au