The Minister for Superannuation, Chris Bowen MP, and Minister for Small Business, Craig Emerson MP, last week 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.”
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.
Source: Media Release from Minister for Financial Services, Superannuation and Corporate Law