ATO updates information on providing SMSF details for employers
The ATO has updated its instructions for SMSFs when updating and informing employers of fund details.
In a recent update, the ATO said that to make SuperStream compliant contributions, employers will need to be fully updated with the e-commerce details of their employees’ SMSFs.
If the employer doesn’t have all the details to send contributions electronically, they can ask the employee to complete a superannuation standard choice form.
Employers who make contributions to your SMSF need the e-commerce details of the SMSF’s ABN, the SMSFs BSB and bank account number for payments and an electronic service address for contribution data.
The ATO reminded that all employers should be using SuperStream.
“Under SuperStream, contribution and rollover data is transmitted in a specific format so it can be used consistently across the super system,” the ATO said.
“Using an SMSF messaging provider is the most practical and economic way for your SMSF to meet the technical requirements of the SuperStream standard without an individually developed and certified solution.
“Ensure you only use an ESA where you have permission to do so from the SMSF messaging provider. For your SMSF to receive employer contributions, your ESA needs to be active. If the ESA is not active or you do not have permission to use it, your employer may redirect your contributions to a stapled super fund, their default fund, and may ask you to complete a superannuation standard choice form.”
Funds also need to make sure it provides SMSF e-commerce details by the date requested and your SMSF is ready to receive their payments and data, according to the ATO.
“If your employer does not have all the details to send contributions to your SMSF electronically, they can ask you to complete a superannuation standard choice form within a reasonable period of time (usually 28 days),” the ATO explained.
“From 1 November 2021, your new employer may have an extra step to take to comply with choice of fund rules if you don’t choose a super fund. They may need to request details of your ‘stapled super fund’ from us.
“A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. If you do not provide a completed form to your employer, and you don’t have a stapled super fund, they can direct your contributions to their default fund.”
Tony Zhang is a Journalist at SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2020, Tony has covered various publications across the legal, financial and professional services sectors including Lawyers Weekly, Adviser Innovation, ifa and Accountants Daily.