The event-based reporting (EBR) framework for self-managed super funds (SMSFs) commenced on 1 July 2018. This system allows the ATO to administer the transfer balance cap. Reporting under the EBR framework commences when your first member begins a retirement phase income stream. The transfer balance account report (TBAR) is then used to report certain events and is separate from the SMSF annual return.
An SMSF must report events that affect a member’s transfer balance, these should include details of:
Pre-existing income streams being received on 30 June 2017 that;
continued to be paid to them on or after 1 July 2017.
were in retirement phase on or after 1 July 2017.
New retirement phase and death benefit income streams including value and type.
Limited recourse borrowing arrangement (LRBA) payments, including the value and date of each relevant payment, if entered into on or after 1 July 2017.
Compliance with a commutation authority issued by the ATO.
Personal injury contributions.
Commutations of retirement phase income streams that occur on or after 1 July 2017.
All SMSFs must report events that affect their members’ transfer balances. If no event occurs, there is nothing to report.
Timeframes for reporting are determined by the total superannuation balances of an SMSF’s members. In the events affecting members’ transfer balances, reports must be made within 28 days after the end of the quarter in which the event occurs. Unless a member has exceeded their cap and the fund needs to report an event sooner, the first due date for the lodgment of TBARs is 28 October.
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.
