Introduction

The Australian Taxation Office (ATO) is implementing significant updates within the Small Business Superannuation Clearing House (SBSCH). These changes are aimed at enhancing the precision and security of superannuation contributions. As of 15 March 2024, employers using the SBSCH need to be aware of the following. modifications:

SMSF Bank Account Validation

The pivotal update involves the introduction of SMSF bank account validation. This validation process ensures that your employee’s SMSF bank account details match their SMSF records. Here’s what you need to know:

1. Verification Step: When submitting super guarantee (SG) payments to an employee’s SMSF, the SBSCH will now verify the accuracy of the bank account details. This step is crucial to prevent any discrepancies.
2. Invalid Super Fund Bank Details Error: If there is a mismatch between the provided bank account details and the SMSF records, you’ll receive an invalid super fund bank details error on the SBSCH payment instruction. In such cases, the SBSCH cannot accept payments to your employee’s SMSF.
3. Action Steps:

• Check with Your Employee: First, verify with your employee that the bank account details they’ve provided exactly match what’s listed on the SMSF record against the superannuation account.
• Update Information: If incorrect or no details are listed, a trustee or tax professional may need to update the information in Online Services.
• Update SMSF Bank Details in SBSCH: If your employee has provided updated SMSF bank account details, make sure to update them in the SBSCH.
• Remove Invalid Payment Amounts: Remove any payment amounts entered for employees with the invalid super fund bank details error. Ensure that your payment matches the new ‘Total to Pay’ amount.
• Submit Corrected Payment Instruction: Once the employee’s fund bank account matches what’s listed on the SMSF record, you can submit a corrected SBSCH payment instruction for that employee.

Conclusion

These changes are designed to streamline processes and enhance accuracy. If you encounter any issues or need further assistance, visit the Small Business Super Clearing House (SBSCH) for more information.

Remember, staying informed ensures smooth superannuation contributions for your employees and their SMSFs. To speak with a professional, contact our team at Avance today.

Resources

¹: Upcoming changes in the Small Business Super Clearing House | Australian Taxation Office ²: New clearing house protocols for SMSFs | SMS Magazine ³: ATO makes changes to the Small Business Superannuation Clearing House …