What is the small business superannuation clearing house

The ATO finalised guidance on its compliance approach concerning timing of income tax deductions for super contributions made through the Small Business Superannuation Clearing House (SBSCH). In its Practical Compliance Guideline PCG 2020/6, the ATO signals it will not apply compliance resources to determine the income year for which an employer is entitled to claim income tax deductions for super contributions made through the SBSCH. This PCG finalises draft PCG 2019/D8. This approach will apply to an employer if: * payments were made to

the SBSCH on behalf of an employee before close of business on the last business day of the income year * at the time of making the payment, all relevant information to enable the SBSCH to process the payment to the employees’ super fund accounts or RSA was provided * the payment was not dishonoured by the super fund or RSA or returned by the SBSCH, and * the employer would otherwise be entitled to the income tax deduction. In these circumstances, the

ATO would not apply compliance resources to consider whether the contribution made was received by the trustee of the super fund in the same income year in which payment to the SBSCH was made. This approach does not apply to contributions made through a clearing house other than the SBSCH. This Guideline applies before and after the date of issue (3 June 2020).