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Wednesday, 26 November 2014

Employers will benefit from $20 million in red tape savings as we further reduce the compliance burden faced by employers when making superannuation contributions for their workers.

We are committed to reversing the deterioration in the small business environment experienced under six years of Labor and six Labor Small Business Ministers.

Removing red-tape is an important part of that effort.

From 1 July 2015, the Government will expand access to the Small Business Superannuation Clearing House (SBSCH).

This means all businesses with an annual turnover below the small business entity turnover threshold, currently set at $2 million will be eligible to access SBSCH.

This single measure will provide approximately 27,500 additional small businesses with a cost free solution to help them meet their superannuation obligations.

The SBSCH is a free online service helping small businesses meet their Superannuation Guarantee (SG) obligations.

SBSCH allows employers to pay superannuation contributions in one transaction to a single location to reduce red tape and compliance costs.

Since the Abbott Government transferred the SBSCH to the ATO the number of small businesses enrolled to take advantage of the service has increased by 24 per cent. This represents an ongoing annual compliance cost saving for those businesses of over 76,000 hours.

In addition to providing a cost free solution to small business, we will further reduce superannuation red tape by removing the obligation on business to offer employees choice of fund when it does not make sense to do so.

From 1 July 2015, employers will no longer be required to offer choice of fund forms to temporary resident employees or to employees whose superannuation fund has merged.

This measure will not only reduce unnecessary red-tape but it will also reduce the number of employers who become liable for heavy penalties after inadvertently neglecting to provide choice.

Since the 2013 election, the Coalition Government has announced more than $2.1 billion in red and green tape savings for the business and not-for-profit sectors.

This is more than double our commitment to remove $1 billion in red and green tape from our economy each year.

We committed to ensuring Australia becomes the best place to grow and build a business.