SMSF Electronic Service Address

We have received a notification from the ATO to advise that we need to establish an electronic service address just so an employer can advise us that they have deposited funds into our SMSF.

I find this rather odd, if it was required by the ATO for services then that may make sense, but the world of commerce gets along quite nicely using fax, snail mail or email for transactions far larger than and more important than SMSF contributions.

I really don't understand why SMSF's have to bear an extra cost to replace something that has worked for years with something that is just as susceptible to being lost in cyber space as that which it replaces.

If one was a fully qualified accountant one could simply check the SMSF bank statement and say "Good, the Super contribution is there" like we have been doing for 20 years but obviously we are all idiots so that can't be allowed to happen.

Perhaps it is just another way to discourage those horrible people with SMSF's who refuse to donate to the ever growing gravy train of the financial institutions and compulsory super contributions. :(

For our convenience they provide a link of people we can give our money to so they can receive the email which was previously unnecessary to tell us the deposit has been made to our bank account.

http://www.ato.gov.au/Super/SuperStream/In-detail/Contributions/SMSF-messaging-service-providers/

More wasted time and money :(
 
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A special SMSF service is being rolled out towards June. Hold off for now.

At present small employers can pay employee super through Medicare. They are moving this to the ATO to streamline things. Then all SMSFs will be able to register through ATO and it will become a clearing house. ie employer can make one payment covering many employees to multiple funds.

I believe this measure has also been delayed a year and compulsory use starts July 2015. Dont sue me if I'm wrong - My latest reading on this was a few weeks ago. Recent laws were give assent late.

WHY ??? The electronic process will ensure that the account that receives funds is a genuine SMSF account and not a scheme by someone to bypass preservation. A number of early release schemes involve using dodgy bank accounts. Same applies to rollovers etc. This change is due to the increase in fraud, theft and abuse of preserved super. Also the new system will be 100% paper free ie electronic.
 
Hi Paul,

The letter from the ATO is dated 28.2.14, I have diarised for action today as we need to be registered and have advised the employer before 1.7.14.

I will check further and see if I can confirm 2015 start date
 
Found this info for employers but this seems to confirm that SMSF's need to provide details to employers before 1.7.14 and it is the employers who have until 2015 to comply, I will wait a bit longer and see what happens

Employers FAQ:

When do I have to start using SuperStream?

If you have 20 or more employees (medium to large employer), your SuperStream obligations under the Superannuation Data and Payment Standards 2012 (the Standard) start from 1 July 2014. From that date, employers will start implementing SuperStream and you have until 30 June 2015 to meet the SuperStream requirements when sending superannuation contributions on behalf of your employees1.

We are facilitating the implementation of SuperStream for employer contributions by coordinating the introduction of compliant SuperStream solutions. You will need to work with your service provider to decide when best suits to make the change.

If you have 19 or fewer employees (small employer), your SuperStream obligations start from 1 July 2015. You have until 30 June 2016 to meet the SuperStream requirements when sending superannuation contributions on behalf of your employees.2 Note that you can voluntarily adopt the SuperStream from 1 July 2014 if you are ready and many solution providers may offer to assist you to do this from this date onwards.

http://www.ato.gov.au/Super/SuperSt.../Employer-FAQs-Getting-ready-for-SuperStream/
 
Correction to prev post - ATO just administer it. Providers are the workhorse. Australia Post are going to be a "public" provider of ESA's for SMSFs....
I see its not "free".... One more cost for SMSFs. But SMSFs that register early can halve the annual cost to $25pa.

The ESA problem is that its not just notifying contributions. Its rollovers (in and out too). Not using an ESA organisation like Aust Post might be problematic and mean contributions and rollovers cannot be made.http://www.ato.gov.au/Super/SuperStream/

Full list of ESA providers is:http://www.ato.gov.au/Super/SuperStream/In-detail/Contributions/SMSF-messaging-service-providers/

Some are limited to their software users (Class, BGL etc) and others are limited to admin service users (eg e-super). A few are for the "public"

Info on Aust Post ESA is :
http://auspost.com.au/business-solutions/self-managed-super-fund.html

This is meant to ease red tape ...How ?
 
When we consider that there are over 500,000 SMSF's in Australia it becomes obvious why it is being done, let's see 500,000 x $25 per annum, that is $12.5 million each year being paid to the financial institutions to replace their gouging fees that people try to avoid by opening an SMSF.
 
When we consider that there are over 500,000 SMSF's in Australia it becomes obvious why it is being done, let's see 500,000 x $25 per annum, that is $12.5 million each year being paid to the financial institutions to replace their gouging fees that people try to avoid by opening an SMSF.

Plus it's a treasury operation. These guys hold on to your money for a few days after the employer pays it, as I've just discovered. If they hold it for 5 days each month, then

11.5 million employed * $1,500/week average earnings 52 weeks * 9.25% super * 2.7% RBA interbank rate * 60 days per year/365 = $37.5 million.

How much fraud are the ATO trying to avoid?
 
I registered with one that did not charge. Overseas right now, but from memory smsf data flow.

Hopefully the payments will be as streamlined as before
 
SMSF Electronic Message Service

Hi

If you have a Macquarie SMSF Cash Management Account you get access to their Electronic Service Address for FREE.
 
Update

Latest news from my sources suggests that a lower SMSF levy may be in the budget. Apparently the ATO arent fans of the "bring forward" aspects by ALP which have doubled the levy on top of the levy also doubling. ATO feels its making a profit rather than the levy covering its annual compiance burden.
 
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