Auswild & Broad | Blog

On 15 March 2024, the ATO's Small Business Super Clearing House ('SBSCH') will roll out SMSF bank account validation.

This checks that an employee's SMSF bank account details match their SMSF records. If there is a mismatch, or the employee has not listed their bank account details, their employer will receive an invalid super fund bank details error on the SBSCH payment instruction.

This means that the SBSCH cannot accept payments to the employee's SMSF.

Employers who receive this error need to:

• Check with their employee that the employee's fund bank account they have provided exactly matches what is listed on the SMSF record against the superannuation account. If it is incorrect, or there are no details listed, a trustee or tax professional may need to update information in Online Services.
• Update their employee's SMSF bank account details in 'SB SCH Employees', if their employee has provided updated SMSF bank account details.

Employers can still submit an SBSCH payment instruction for employees who have valid super fund details. They should remove all payment amounts they have entered for employees with an invalid super fund bank details error, and make sure their payment matches the new 'Total to Pay' amount.

Once the employee's fund bank account matches what is listed on the SMSF record their employer can submit an SBSCH payment instruction for that employee.

Employers can refer to Small Business Super Clearing House (SBSCH) on the ATO's website for more information.

Ref: ATO website, Small Business Newsroom, 19 February 2024