Small Business Superannuation Clearing House And Self-Managed Superannuation Fund Bank Account Validation

If you are a either a member of a SMSF or have employees who are members of a SMSF and use the ATO Small Business Superannuation Clearing House (SBSCH) the ATO is rolling out a new security feature to assist with fraud prevention and misconduct. The new feature consists of checking for a match between an employee’s SMSF bank account details and the SMSF record when electronic payments are made via the SBSCH. Where there’s a mismatch, the SBSCH cannot accept payments to an employee’s SMSF until the error is resolved. Employees need to ensure that the bank account listed with the ATO is the one receiving contributions from their employer. This may be an issue where a SMSF has multiple bank accounts within the Fund.

If you are unsure of which bank account to process payments for an employee, please confirm with them prior to processing of the March 2024 quarterly superannuation payment. If you are an employee and are unsure of your SMSF bank account listed with the ATO please contact our office and we will be able to confirm the account to provide to your employer.

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Superannuation Rate Increase – What Employers Need to Know

By Cogger Gurry • February 13, 2025

A quick reminder for all employers: the Superannuation Guarantee (SG) rate is set to increase. Currently, you’re required to contribute 11.5% of your employees' ordinary time earnings (OTE) to their super. However, from 1 July 2025 , this will rise to 12% . Super contributions must be paid at least quarterly to eligible employees, so now is the time to plan for this change and ensure your payroll systems are updated. Stay ahead of the update and keep your business compliant. Did you know we also offer Bookkeeping and Payroll Support ? Call us today to discuss how we can help 03 5571 0111

HOW TAX WORKS IN AUSTRALIA’S SUPERANNUATION SYSTEM

By Cogger Gurry • February 13, 2025

Australia’s super system plays a vital role in ensuring financial security for individuals in retirement. However, how superannuation is taxed can appear complex. In Australia, superannuation is taxed at three main points: contributions, investment earnings and withdrawals. This structure is known as a TTE (taxed, taxed, exempt) system: contributions to the superannuation fund are taxed and the investment earnings within the fund are also taxed, but withdrawals made during retirement are generally exempt from tax. That is, in Australia’s system: Contributions, including those made by employers under the super guarantee (SG) and voluntary concessional contributions, are taxed at a concessional rate of 15%. This is lower than the rates that apply to most other forms of income, providing a tax advantage. Earnings generated from fund investments during the accumulation phase are also taxed at a flat rate of 15%. This is beneficial because it’s lower than the tax rates that typically apply to investment income earned outside of superannuation. Withdrawals made during retirement are generally tax-free. This is intended to enhance the appeal of building super savings over your working life, ensuring you have a tax-effective income stream in retirement. Call us today to discuss your superannuation with one of our experts 03 5571 0111

ATO LAUNCHES ITS SMALL BUSINESS FOCUS AREAS FOR 2025

By Cogger Gurry • February 13, 2025

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