SMSF Technicalsmsfdataflow changes and error messages - Grow SMSF Accountants

February 4, 2020by Grow SMSF0

You may have recently received an e-mail stating that smsfdataflow will no longer be supported and will cease operation on 1 March 2020. This web page contains essential information if you’ve signed up to use smsfdataflow for your SMSF to receive contributions from your employer.

 

What is changing with smsfdataflow ?

  • The SMSF Data Flow service is no longer accepting contribution data from 1 March 2020.
  • This change applies to SMSF trustees who registered to use SMSFDataFlow directly via the Class Super website.
  • This change does not apply to SMSFs where your adviser, accountant or SMSF administrator has provided you with the smsfdataflow electronic service address (ESA) to give to your employer or payroll office.
  • This change does not impact clients of Superfund Partners as we utilise Class as our SMSF administration platform. 
  • Class operates SMSFDataFlow so from 1 March 2020 only SMSFs administered on the Class platform will be eligible to receive contribution information using the SMSFDataFlow electronic service address.

What if I’m not a client of Grow?

From 1 March 2020 our clients will still be able to use the smsfdataflow ESA for their employer contributions and will be able to view and track contribution data via the online access we provide (Class ClientView).

If you are not using us as your SMSF administrator, your employer, payroll office or superannuation clearing house may have difficulty paying your compulsory employer contributions to your SMSF after 1 March 2020.

Even if the smsfdataflow electronic service address (ESA) is still valid in your employers payroll system, if you are not using an SMSF accountant such as Grow SMSF, when contributions are paid after 1 March 2020, the contributions data / remittances will be inaccessible, which will make the tracking of your contributions impossible and potentially increase your SMSF accounting fees and put you at risk of exceeding your concessional contribution cap.

What is smsfdataflow ? | Important information on SuperStream and Electronic Service Addresses (ESAs)

SMSFs need to receive employer super contributions using the Governments SuperStream Data and Payment Standard. Every SMSF that receives employer contributions needs an electronic service address (ESA) and the software to receive their SuperStream data.

“smsfdataflow” is an example of an electronic service address (ESA). Please note the smsfdataflow ESA is case sensitive – payroll software and clearning houses will reject the contributions remittance advice where another variant is entered into the payroll system.

An SMSF doesn’t need to use SuperStream if it doesn’t receive any employer contributions, or the only employer contributions are from a related-party employer.

For example, if you’re an employee of your family business and your super guarantee contributions go to your SMSF, these contributions are exempt from the SuperStream standard.

SuperStream also doesn’t apply to:

  • personal contributions made by members
  • rollovers to or from an SMSF (however this is changing from 31 March 2021)

If you don’t provide a valid ESA (electronic service address) to your employer they will not be able to pay contributions to your SMSF.

What does this mean for me?

If you are a client of Grow, there are no changes for you. We will continue to use the smsfdataflow ESA for your benefit.  If you don’t have online access to Class to view and track the contributions paid to your SMSF, please contact us.

In addition, if you are a client of Grow there is no need to change the ESA that your employer or payroll office has on file – smsfdataflow will still work after 28 February 2020.

If you are not a client of Superfund Partners or you have been using the SMSF Data Flow service directly to enable your employer to pay contributions to your SMSF, please get in touch to determine how we can assist you.

URGENT – Self Managed Super Fund ESA Rejection

We have been made aware that a number of employees of NSW Health (and other businesses that use certain super payment clearing houses such as QuickSuper) have received emails from their payroll office in regards to contributions made using the smsfdataflow ESA have been rejected and that you will need to provide a new electronic service address (ESA) to continue receiving contributions to your SMSF account.

The emails are as follows:

____________________________________________________

Subject: URGENT – Self Managed Super Fund ESA Rejection – Case HRCxxxxxxx
Importance: High

Hello,

HealthShare NSW have recently received notification from QuickSuper, our Superannuation Clearing House, advising that we are unable to send remittance advice to the Electronic Service Address (ESA) provider for your Self-Managed Superannuation Fund (SMSF). Please note that it is possible that the payment to your SMSF has been successful, however the message delivery (remittance advice) has failed. We will send a separate notification if there has been an issue with payment to your SMSF.

We have received information that the Electronic Service Address SMSF DataFlow is no longer accepting contribution data from 1 March 2020, unless your fund is administered on class.

As your current ESA is set to SMSF Dataflow and has rejected, please contact the Administrator looking after your self managed super fund to see whether your ESA needs to be amended. This issue may also be due to the following reasons:

  • You have provided the wrong ESA
  • You have changed your ESA and not advised us

To ensure your SMSF is compliant to the ATO requirements, HealthShare NSW will require the official letter of registration from your ESA provider.

You may need to forward this email on to your Accountant or Financial Planner for further advice and/or clarification.

PLEASE NOTE: If we continue to receive rejection notifications 28 days after our first contact to you, this will deem your SMSF to be non-compliant and your Superannuation Fund will be changed to our default Fund (First State Super) as per ATO Legislation. You will then be responsible for rolling over any contributions from First State Super into your preferred Super Fund, as well as any fees associated with this.

The following link to the ATO provides information regarding inactive Electronic Service Addresses.

https://www.ato.gov.au/super/superstream/self-managed-super-funds/smsf-superstream-faqs/#Whathappensiftheelectronicserviceaddress

____________________________________________________

 

Other useful information:

SuperStream for SMSFs – ATO

Class Super – SMSF Data Flow and SuperStream for SMSFs

SuperStream FAQs

Q: What is the ESA (Electronic Service Address) for my SMSFs?

For all SMSFs looked after by Grow, the ESA is: smsfdataflow

It could also be listed as “Class Super (smsfdataflow)” depending on the clearing house / payroll provider.

 

Q: Is this change compulsory for all SMSFs that receive employer contributions?

A: If the employer has 20 or more employees, it is compulsory for them to comply with the SuperStream requirements from 1 July 2014. If the employer has 19 or less employees, they still need to comply – but they had until 1 July 2015 to meet the new standards. There is also a very limited exemption when the only employees are also members of the SMSF – which may cover some self-employed persons and small business owners.

 

Q: How much does it cost?

A: The solution available via Grow (smsfdataflow) is absolutely free for all our clients. Please be aware that other solutions, such as the one available from Australia Post, require the payment of an annual subscription.

 

Q: What happens if I don’t provide the relevant ESA details to my employer?

A: The employer will not be able to pay contributions to their SMSF and may be forced to pay it to a default superannuation fund not of your clients choosing.

 

Q: What is the solution for employers?

A. If a business is using an existing superannuation payment service or clearing house (i.e. a service provider), then there is not much of a change – the service provider will handle payments via the SuperStream standards – the employer just needs to ensure that any employees with SMSFs provide their appliance ESA details such as ‘smsfdataflow’ as above.

 

Q: What happens if I change the accountant / SMSF administrator looking after my SMSF clients?

A: Our solution is entirely portable, so it would simply be a case of notifying the new accountant / administrator that you use SMSF Data Flow and they can do the rest.

 

Q: I’m not a client of Grow – can you help me with my SMSF?

A: Firstly you need to ask yourself – why hasn’t your current SMSF service provider (accountant / administrator) provided details about your SuperStream obligations as a trustee of an SMSF?

Secondly, you should get in touch with us to discuss your needs further.

 

Q: What is the point of SuperStream for SMSFs?

A: SuperStream is all about improving the efficiency of the superannuation system. SMSFs are the largest and fastest growing part of the superannuation landscape so they have to be included in any changes to systems and technologies.

This change shouldn’t be seen as an administration burden – it further increases the efficiency that a business like Grow can provide – meaning we both same time, which will translate into better and more cost effective service.

SuperStream will also make tracking employer contributions easier, meaning less chance of excess contributions tax and penalties.

 

Q: Where can I find out more information about SuperStream?

A: We recommend you visit the ATO website here: SMSFs – the SuperStream standard for contributions

 

Other questions on smsfdataflow:

  • What is SMSF DataFlow?
  • How do I get an ESA for my SMSF?
  • How do you become SuperStream compliant?
  • What is a fund electronic service address ESA?
  • Who are the ESA providers for SMSFs?
  • What are the benefits of using Class Super for SMSF administration?
  • How do I register my SMSF for SuperStream?
  • ADP ESA ERROR

 

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