Actionable Update to SMSF Bank Account Validation
ATO update introduces SMSF bank account validation aimed at improving the precision and security of superannuation contributions
Given the proximity of the next SG contribution deadline on 28 April 2024, it is important to take action ahead of this date to prevent potential compliance issues.
Key points
- The ATO implemented a pivotal update within the Small Business Superannuation Clearing House (SBSCH) on 15 March 2024
- This new system feature affects all small employers who use the SBSCH to pay superannuation to employee SMSFs
- The ATO’s validation process requires small employers using the SBSCH to ensure perfect alignment between their employees’ SMSF bank account details and the corresponding fund bank account details recorded by the ATO
- The validation focuses on the BSB and account number as registered under the SMSF’s Superannuation Role within ATO systems. For any employee where there is no exact match, the SBSCH will not process their superannuation payment.
Action Required: Review Employee Records
The ATO is contacting small employers likely to be impacted by the new SBSCH SMSF bank account validation process.
However, with SG obligations for the March 2024 quarter due no later than 28 April 2024, it is important for small businesses to act proactively.
If you are a small business using the SBSCH, it is important that you contact your 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.
Where employees are unsure how to check if the bank account their employer makes super contributions to is the same as the one registered with the ATO, please contact Allan Hall for assistance on 02 9981 2300.
Should there be a need for an employee to amend SMSF bank details held by the ATO, it is 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.
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.