The ATO recently made changes to Small Business Superannuation Clearing House (SBSCH). This impacts small businesses who use the SBSCH to make contributions to employees who have an SMSF.
What is changing?
From 15 March 2024, the ATO introduced SMSF bank account validation in the SBSCH.
This change will affect all small employers who use the SBSCH to pay superannuation contributions to their employees’ SMSFs. It will help ensure that contributions are directed to the correct SMSF bank accounts, reducing the risk of errors or misdirected funds.
The validation process will require any small employer using the SBSCH to ensure that their employees’ SMSF bank accounts match the bank account details registered with the ATO.
If there is a mismatch, or the employee has not listed their bank account details, superannuation contributions will not be processed through the SBSCH. An error message will indicate that the SBSCH cannot accept payments to the employee’s SMSF until the bank account details are verified and updated accordingly.
Action items for employees who are SMSF trustees
- Check your SMSF bank details:make sure the bank account details your employer is using to pay your superannuation contributions match the bank account details registered with the ATO for your SMSF.
- Check in with your employer:if you have more than one SMSF bank account, or have recently changed your bank account details, or you’re not sure your details match, speak to your employer as soon as possible to update your details.
- Contact your registered tax agent for help: your tax agent can check if the ATO has your current SMSF bank account details by checking the bank account listed on the fund’s superannuation account in the ATO’s Online services for business or Online services for agents. Alternatively, you can also give the ATO a call on 13 10 20 to check yourself.
Action items for employers
As mentioned above, small businesses using the SBSCH should contact their employees to confirm that the SMSF bank account they pay superannuation contributions to exactly matches what is listed on the SMSF record against the superannuation account with the ATO.
If there are any discrepancies or no bank account details listed, it may be necessary for the employee (or the employee’s tax professional) to update the information through the ATO’s Online services portal.
Need help?
We’re here to help – let us know if you would like us to check that the ATO has your SMSF’s current bank account details as this could avoid any potential disruptions in receiving your superannuation contributions.
