The Australian government has announced that it will deliver its free superannuation contributions clearing house service for small business through Medicare Australia.
It is a key feature of the superannuation system for participating small businesses with less than 20 employees that 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, and will be available from July 2010.
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 minimize the impacts of the measure on competition in the existing clearing house market.
The superannuation clearing house will be funded through the AUD16.1m (USD14.75m) allocation that was made available in the 2008-09 budget, and will be reviewed at the end of an initial three year period.
"To meet their choice of fund obligations, small businesses currently face the time and paperwork burden of paying contributions into numerous funds. The clearing house will cut this red tape burden by enabling small businesses to pay their superannuation contributions electronically to a single location," the Minister of Superannuation, Chris Bowen explained.
"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," Bowen concluded.
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