In an online update, the ATO stated that it has removed the ability to add an SMSFs bank account details to the online and paper application for an ABN registration for an SMSF.
“New SMSFs will now need to provide us with their bank account details after they have registered through their Registered tax agent, Online Services for business or by calling us on 13 10 20,” the ATO said.
The ATO said it has taken this step to help reduce the risk of fraud in the super system and protect the retirement savings of SMSF trustees.
“If you are a new SMSF or a tax agent who sets up SMSFs on behalf of your clients, you need to ensure you notify us of the SMSF’s bank account details prior to members requesting a rollover. If you don’t, the rollover cannot be processed,” the ATO cautioned.
The ATO reminded SMSFs that they also need to ensure they have registered for an electronic service address and provided these details to the ATO before a member requests a rollover.
“Otherwise you will experience delays,” the ATO warned.
Speaking at a Chartered Accountants Australia and New Zealand (CA ANZ) conference in October, ATO Assistant Commissioner, SMSF risk and strategy, Justin Micale said with SMSF scams becoming more prevalent, the ATO was working with other government agencies to identify and mitigate risks.
In 2022, Mr Micale said the ATO identified increasing numbers of individuals that were victims of identity fraud where SMSFs were registered without their knowledge or consent.
“The other key type of fraud arises where scammers contact individuals and coerce them into providing personal information, setting up an SMSF and/or investing in their bogus products” he warned.
“These scammers are becoming increasingly sophisticated impersonating well-known Australian companies and using personal details to gain trust.”
One of the other key strategies the ATO has deployed to help address fraud and scams is to issue alerts when a new SMSF is set up or a member is added to an existing SMSF.
The ATO also sends an alert when the SMSF’s bank account, electronic service address or authorised contacts for the fund are changed.
“If your clients receive an ATO SMSF alert and are not aware of any activity, make sure they act quickly and contact us, so we can stop the fund registration or the change of details from proceeding,” said Mr Micale.
“This is why it’s vital you ensure your clients’ individual contact details such as their mobile number and email address are kept up to date with us, as this will ensure they receive our alerts and are notified of any changes to their SMSF.”
When we’ve made a change on the Tax Return (Bank details, ESA etc) and the client gets the text message, 9 times out of 10, they’ve called us asking if it was spam, which then takes time out of our day to double check for the client. Surely there’s a better way?
Great initiative to protect client money and data.
The only concern is there’s so many ATO alerts coming through with no detail on what was changed. It confuses the clients and make it hard for the agent.