New SMSF registration procedure to protect your Super Savings against fraud!
To combat fraud, the ATO has made several adjustments to the SMSF registration procedure.
From a recent announcement, the ATO stated that the option has changed the self-managed super fund (SMSF) registration process, removing the opportunity to add the SMSF's bank account details to the online and paper Application for an ABN registration for an SMSF.
“New SMSFs will now need to provide us with their bank account details after they have registered through their Registered tax agent, Online Services for business or by calling us on 13 10 20,” the ATO said.
“These scammers are becoming increasingly sophisticated impersonating well-known Australian companies and using personal details to gain trust.”
The ATO stated that this action is to protect the retirement funds of SMSF trustees and to minimise the likelihood of fraud occurring within the SMSF system.
“If you are a new SMSF or a tax agent who sets up SMSFs on behalf of your clients, you need to ensure you notify us of the SMSF’s bank account details prior to members requesting a rollover. If you don’t, the rollover cannot be processed,” the ATO cautioned.
Before a member requests a rollover, the ATO reminded SMSFs that they are also need to ensure that they have registered for an electronic service address and given these details to the ATO.
“Otherwise you will experience delays,” the ATO warned.
When a new SMSF is established or a member is joined to an existing SMSF, the Australian Taxation Office (ATO) will issue an alert. This is one of the other main tactics that the ATO has implemented to help address fraud and scams.
When there is a change to an SMSF's approved contacts, electronic service address, or bank account, the ATO will additionally send out a notification about the event.
“If your clients receive an ATO SMSF alert and are not aware of any activity, make sure they act quickly and contact us, so we can stop the fund registration or the change of details from proceeding,” said Mr Micale.
“This is why it’s vital you ensure your clients’ individual contact details such as their mobile number and email address are kept up to date with us, as this will ensure they receive our alerts and are notified of any changes to their SMSF.”