Does your SMSF receive employer contributions?
If yes, then an important regulatory change is taking place involving those contributions. The change will begin to take effect on 1 July 2014.In some cases, you must have some processes in place by 31 May 2014.
- If you (or any member) work for a medium to large business – that is, those employing more than 19 people.
Your fund must be able to accept an electronic message from the employer by 1 July 2014 and will need an electronic service address to do so. The message will contain details of the payment including the employer’s name, their Tax File Number and the contribution amount.
It might also contain the employee’s residential address, TFN, telephone number, date of birth and sex.
The Tax Office has estimated that about 150,000 SMSFs will be impacted by this rule.
- All other businesses
Your fund must be able to accept an electronic message from the employer by 1 July 2015. Again, the message will contain relevant details about the payment and the employee.
The Tax Office has estimated that there are about 50,000 SMSFs in this category.
What your SMSF members must give their employer
To send you employer contributions, employers need your fund’s ABN, bank account and electronic service address. This is different to a website address or an email address.