• Obtain information sufficient to identify accounts held by US citizens, which requires proving an account is not a US account. • Comply with verification and due diligence procedures on such accounts as required by US Treasury. • Comply with requests from US Treasury for additional information. • FFIs must withhold 30 per cent tax on payments to recalcitrant account holders, as well as payments to non-participating FFIs which are attributable to certain US sourced payments received by the FFIs. • If foreign law would prevent reporting accounts, the FFI should obtain a waiver from the customer to allow the reporting. If a waiver cannot be obtained, the account should be closed, even though this may be against the spirit of Australian privacy and consumer laws. • FATCA has been designed to override tax treaty and other withholding exemptions.
Administration & fees
Payday super changes have been touted as addressing the issue of unpaid super and as putting members’ contributions to work sooner, earning them more in the long run. But the member benefits will only become real if every link in the chain between the employer and the member’s account works as it must, and there’s still a few yet to be joined up.
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