From 1 July this year it will be compulsory for employers with 20 or more employees (large employers) to pay contributions to your SMSF electronically. Plus from 1 July 2015 it will be necessary for all employers (including small employers with 19 or less employees) to make contributions electronically.
Under the new rules SMSFs will be required to receive contributions using an ecommerce standard so that contributions can be received by direct credit or Bpay and the contribution data message is received electronically via a nominated electronic address.
If you have employer contributions being made into your SMSF there are three pieces of information that you need to provide to your employer by 31 May 2014 if contributions are to be made into the fund from 1 July.
- The fund’s Australian Business Number (ABN);
- Confirmation of the fund’s bank account details; and
- An electronic service address.
Some financial institutions, such as Macquarie, provide an electronic service address as a fee free feature of their accounts for SMSFs.
For further information please contact your adviser at WLM.