Tony Negline, superannuation and financial services leader for Chartered Accountants Australia and New Zealand, said on a recent SMSF Adviser podcast that he believes there will be a “sizeable” number of SMSF trustees on 1 July rushing to find an ESA solution.
“Of course, we’ve got the large SMSF admin providers, who have got their own ESA solution, and there are some that you can actually buy, but not many of them. Australia Post left the market and you should probably have all of that in place now,” he said.
“Anyone who has an SMSF really should be checking to make sure that their ESA actually does work. If an SMSF member wants their contributions to go into their fund, they’ve got to keep it in good standing. That means making sure their ESA works.
“Let’s say, all of a sudden one of the ESA providers turns around and merges with someone, and closes down, then you’re scrambling to find another solution.”
John Delaney, managing director of Colladium SMSF Gateway, said trustees and advisers using Australia Post and SuperChoice’s expiring SMSF messaging services should act early to obtain a new, compliant ESA and continue receiving contributions.
“SMSFs using those platforms will no longer have a valid ESA or be able to receive employer contributions. They need to switch to another compliant SMSF messaging provider,” Delaney said.
He said there are six practical steps that trustees can follow to ensure they have a compliant ESA in time for 1 July.
“First of all, trustees and advisers must select an ATO-registered and SuperStream-compliant SMSF messaging provider, who can issue them a new ESA instantly. This ensures their fund can continue receiving super contributions without issues and stay compliant with the ATO’s requirements,” he said.
“Speed, ease of use and similarities matter during a transition. Look for an ESA provider that allows you to get set up in minutes, obtain an ESA and keep contributions flowing immediately, and have complete visibility of all contribution data in one place.”
He added the provider should also ideally have the capability to view, search and download contributions easily and receive affordable and transparent pricing that is similar to your existing ESA provider’s pricing.
“SMSF advisers should also select a service that enables them to add multiple SMSFs in bulk, share contribution visibility with trustees, manage all contributions efficiently from one centralised dashboard and have complete visibility and control over multiple SMSFs’ contribution data.”
Delaney continued that once an SMSF trustee has chosen an ESA service, they should sign up and obtain the new ESA. The process should be quick and a good SMSF ESA provider will let the client create an account online, add their SMSF details and receive an ESA immediately.
“The sooner you have a new ESA, the sooner you can receive employer contributions,” Delaney said.
“Following this, the ATO needs to be updated every time an SMSF has a new ESA. SMSF trustees can do this online via the Australian Business Register or through a registered agent. This step is important for compliance and helps ensure contributions are processed correctly.”
He said employers also need to know the updated ESA to send contributions to an SMSF accurately.
“Some SMSF messaging services, like Colladium SMSF Gateway, provide pre-filled ESA forms, which users should download, complete and send to employers as soon as possible,” he said.
“If multiple employers are contributing to an SMSF, make sure each one is updated.”
After switching, Delaney said, trustees should monitor their SMSF gateway to confirm contributions are being received as expected. They should look for correct payment amounts, dates, payment reference numbers (PRN), employer details and contribution breakdown.
“One of the most common mistakes is waiting until the last minute to get a ESA,” Delaney said.
“If your SuperChoice or Australia Post SMSF Gateway service expires before your new setup is complete, contributions may be delayed. Switch early to avoid any disruption. SMSF advisers should move clients in batches if needed. A structured approach will help you reduce pressure and improve business continuity.”
