However, I do think that a lot of what The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP released for discussion are very worthwhile reforms. I how they can successfully pull it off.

“The reforms will reduce unnecessary reporting obligations on companies and implement a number of other important refinements to our corporate regulatory framework.” Mr Bowen said

The key measures to reduce red-tape include:

• significantly reducing the regulatory burden on companies limited by guarantee (which typically have a not-for-profit purpose), by introducing a three tiered differential reporting framework;
• streamlining parent-entity reporting;
• providing greater flexibility for companies to pay dividends, by replacing the profits test with a solvency-type test; and
• allowing companies to more easily change their year-end date to minimise the burden on companies and their auditors during peak reporting periods.

The reforms will also implement refinements to the regulatory framework, including:

• improving disclosure of non-financial information in the directors’ report;
• protecting solicitors’ representation letters from disclosure to enable auditors to properly verify a company’s contingent liabilities;
• refining the statement of compliance with International Financial Reporting Standards contained in the directors’ declaration; and
• clarifying the circumstances in which a company can cancel its share capital.

Copies of draft amendments, the explanatory material and the regulation impact statement can be obtained from the Treasury website: www.treasury.gov.au.

The closing date for submissions is 3 February 2010.

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

A worker of an employer that is not required to hold a policy will still be covered for workers compensation and employers will still have the same obligations as they do now to provide assistance with injury management and return to work.

Currently in NSW, all employers regardless of the amount of wages paid are required to hold a workers compensation policy of insurance. This includes private householders employing domestic assistance such as nannies and employers who employ on a part time or intermittent basis. Many small businesses owners also hold a policy just in case they employ someone. This change will reduce the regulatory burden for these, the smallest of the state’s employers.

The changes will also extend the workers compensation insurance coverage to the nearly 2.5 million households in NSW.

If the worker of an employer that is not required to hold a policy is injured, the employer will be required to report the claim and pay a one-off fee of $175.

The changes further align New South Wales’ arrangements with those in place under the Victorian workers compensation system.

Another change which will assist employers is the simplification of workers compensation record keeping requirements, with a reduction of the period that wages records must be kept, from seven to five years. This change also aligns New South Wales’ workers compensation requirements with those of Victoria and the Australian Taxation Office for business records.

For more information and FAQ see Workcover NSW