The Minister for Superannuation, Chris Bowen MP, and Minister for Small Business, Craig Emerson MP, have announced that the Government will deliver a 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.
Eligible small businesses will register for the service on-line from May 2010 and thereafter their superannuation contributions will be paid to a single location (the clearing house) which will forward them on to the nominated superannuation funds.
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.
Employers will also be able to pass on choice of fund nominations to the clearing house for processing.
Medicare Australia will develop an online system for registration and on-going payments, with payments initially being made via electronic funds transfer (EFT).