In an ongoing effort to address the misuse and abuse of the tax and regulatory systems, the ATO has implemented a new tool to monitor what constitutes reasonable personal living expenses.
Information is requested by the tax office to identify unreported cash income when looking at household expenditure. An individual will be required to provide this information to work out if they need to make adjustments to their business and record-keeping practices as well as help the ATO identify if they should be selected for an audit.
In the event of an audit or when making an assessment in the course of examining an individual’s tax affairs, the ATO will employ a set of guidelines presented in the form of questionnaire worksheets. These worksheets will require taxpayers to provide certain details about the living expenses of their household.
Discrepancies in tax returns that have been discovered by individuals completing a personal living expenses worksheet can be adjusted through voluntary disclosure. Taxpayers that voluntarily inform the ATO of mistakes before an audit may be eligible for reduced penalties.
For small businesses in Australia, managing superannuation payments for employees can be a time-consuming and complex task.
Super guarantee payments must be made quarterly, with the next due date being the 28 April.
However, the Australian Taxation Office (ATO) offers a solution in the form of the Small Business Superannuation Clearing House (SBSCH).
This online service simplifies paying super contributions for employees, providing small businesses a convenient and efficient way to meet their super obligations.
Let’s explore the SBSCH’s features and benefits and how small businesses can use this tool to streamline their super payments.
What is the Small Business Superannuation Clearing House (SBSCH)?
The Small Business Superannuation Clearing House is a free online service the ATO provides to help small businesses meet their superannuation obligations.
It allows employers to pay super contributions for their employees in one transaction, regardless of the number of funds they contribute to.
The SBSCH acts as a central hub where employers can lodge their super payments, which are then distributed to the respective employees’ super funds.
You’re eligible to use the Small Business Superannuation Clearing House (clearing house) service if your business has either:
19 or fewer employees, or
annual aggregated turnover of less than $10 million.
You must meet one of these eligibility criteria each time you use the service.
Features and Benefits of the SBSCH:
Consolidated Payments: Employers can consolidate all their super contributions into a single transaction through the SBSCH instead of making separate payments to multiple super funds. This simplifies the payment process and reduces administrative burden for small businesses.
Accessibility: The SBSCH is accessible 24/7 through the ATO’s online services portal. Employers can log in to the portal anytime to submit their super payments, providing flexibility and convenience.
Secure and Confidential: The SBSCH employs strict security measures to ensure the confidentiality and integrity of employers’ financial information. All transactions are encrypted and protected by robust security protocols, giving employers peace of mind when making super payments.
Compatibility with Different Payment Methods: When using the SBSCH, employers can choose from various payment methods, including electronic funds transfer (EFT), BPAY, and direct debit. This flexibility allows businesses to select the best payment method for their needs and preferences.
Integration with Business Accounting Software: The SBSCH is compatible with most business accounting software, making it easy for employers to integrate super payments into their existing financial workflows. This seamless integration reduces manual data entry and streamlines the payment process for businesses.
How to Use the SBSCH
Using the Small Business Superannuation Clearing House is straightforward and user-friendly.
Employers can follow these simple steps to make super contributions for their employees:
Register: Employers need to register for the SBSCH through the ATO’s online services portal. Registration is free and only takes a few minutes to complete.
LogIn: Once registered, employers can log in to the SBSCH portal using their unique credentials.
Enter Payment Details: Employers need to enter the payment details, including employee information, contribution amounts, and payment method.
Submit Payment: After verifying the payment details, employers can submit the super contribution payment through the SBSCH portal.
Receive Confirmation: Upon successful submission, employers will receive a confirmation receipt confirming that the super contributions have been lodged with the SBSCH.
The Small Business Superannuation Clearing House (SBSCH) is a valuable resource for small businesses in Australia. It offers a simple and efficient way to manage employee super contributions.
By leveraging the SBSCH’s features and benefits, businesses can streamline their super payment process, reduce administrative burden, and ensure compliance with their superannuation obligations.
For small business owners looking to simplify their superannuation management, the SBSCH is a practical and accessible solution provided by the ATO. 4
Need further assistance with meeting your superannuation guarantee payment dates and submitting? Speak with a trusted advisor.
