06/11/2009 - 12:30

Govt's free SME super plan via Medicare

06/11/2009 - 12:30

Bookmark

Save articles for future reference.

The federal government has announced it will deliver a free superannuation clearing house service for small businesses with less than 20 employees through Medicare Australia.

The federal government has announced it will deliver a free superannuation clearing house service for small businesses with less than 20 employees through Medicare Australia.

Senator Nick Sherry, the Minister for Superannuation and Corporate Law up until June this year, previously indicated the private sector would be involved in coming up with a solution to the red tape issue for small business.

But the contract has been awarded to government department Medicare.

The current Minister for Superannuation, Chris Bowen said small businesses currently face the time and paperwork burden of paying contributions into numerous funds in order to meet their choice of fund obligations.

"The super clearing house will cut this red tape burden by enabling small businesses to pay their superannuation contributions electronically to a single location," Minister Bowen said.

"Medicare Australia is well placed as one of the Commonwealth Government's key service delivery agencies - with significant electronic and payment processing capacity whilst ensuring the privacy of information and the security of funds."

 

Full announcement below:

 

Cutting Red Tape for Small Business - Superannuation Clearing House Service

The Minister for Superannuation, Chris Bowen MP, and Minister for Small Business, Craig Emerson MP, today announced that the Government will deliver its free superannuation clearing house service for small business through Medicare Australia.

The clearing house service will be available for small businesses with less than 20 employees from July 2010.

"To meet their choice of fund obligations, small businesses currently face the time and paperwork burden of paying contributions into numerous funds. The super clearing house will cut this red tape burden by enabling small businesses to pay their superannuation contributions electronically to a single location," Minister Bowen said.

"Medicare Australia is well placed as one of the Commonwealth Government's key service delivery agencies - with significant electronic and payment processing capacity whilst ensuring the privacy of information and the security of funds."

"Today's announcement delivers on the Government's election commitment to reduce a heavy compliance burden for small business associated with the choice of fund obligations," Minister Emerson said.

"It is another instalment in the Rudd Government's reform program to support small business."

Key features of the superannuation clearing house for participating small businesses include:

-Superannuation contributions made to numerous funds will be electronically paid to a single location (the clearing house) which will process the transactions;
-Small businesses that choose to use the clearing house service will have their legal obligation to make superannuation contributions discharged when payment of the correct amount is made to the clearing house;
-The clearing house facility will be offered free of charge to small businesses with less than 20 employees; and
-The clearing house will manage employers' choice of fund obligations.
Under these arrangements, the clearing house will not be available to larger businesses. This is in line with the Government's focus on assisting small business while also seeking to minimise the impacts of the measure on competition in the existing clearing house market.

The superannuation clearing house will be funded through the $16.1 million allocation that was made available in the 2008-09 Budget and will be reviewed at the end of the initial three year period.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options