ATO issues alert on missing unique bank account details for SMSFs
The ATO has issued an alert for some SMSFs that may be missing or have not reported their unique bank account details which will affect the receipt of super payments and future SuperStream changes.
The ATO has begun issuing letters to the trustees of SMSFs that, according to its records, do not have, or have not reported, a unique bank account for the receipt of super payments (such as contributions or rollovers).
“You need to ensure you have a bank account in your fund’s name to manage the fund’s operations and accept contributions, rollovers of super and income from investments,” the ATO said.
“The fund’s bank account must be kept separate from the trustees’ individual bank accounts and any related employers’ bank accounts.
“If funds have received this letter, this means that records show another entity has also reported this bank account to the ATO.”
There may be a number of reasons why this has occurred. The ATO noted that, in some instances, this could be because the tax agent’s bank account, used for the fund’s tax refunds, has also been reported as the bank account for superannuation payments.
“Alternatively, a trustee or member of your SMSF may have incorrectly reported the SMSF’s bank account on their records,” the ATO said.
“If your SMSF is in this situation, you will need to update your SMSF’s bank account that is used for superannuation payments straight away; otherwise, your member’s retirement benefits may be put at risk and you will not be able to roll money in or out of your SMSF.
“This can be done by contacting your tax agent or by calling the ATO on 13 10 20.”
The SMSF Association also flagged that it is aware the ATO is writing to SMSF trustees with no unique bank account records, and reminded that if a client’s SMSF is in this situation, they will need to update their SMSF bank account details to ensure their fund can pay and receive rollovers from 1 October 2021.
“The SMSF will need to record a second, unique bank account with the ATO, if they want to be able to pay and receive rollovers from 1 Oct 2021,” the SMSF Association said.
“It is important to also check that the members, or any other related party, are not reporting the same bank account to the ATO. The Letter also reminded trustees to keep money and other assets of the fund separate from their own personal assets at all times.”
SMSFs that are missing a unique bank account also affect the ATO’s incoming SuperStream changes for super fund rollovers.
From 1 October 2021, SMSFs will need to use SuperStream to roll over super to or from their fund. SMSFs will also be able to receive and action certain release authorities electronically via SuperStream.
The ATO said: “To be able to use SuperStream, your SMSFs will need an electronic service address (ESA) that provides a rollover SuperStream service, an Australian business number (ABN), and to record with us the SMSF’s unique bank account for superannuation payments and ESA.
“To avoid delays in rolling your members’ super in or out of your SMSF, it’s important the above requirements are met.”
Tony Zhang
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.
