Currently the super clearing house is restricted to employers with 19 or fewer employees. The Government intends to remove this limitation and replace it with an annual turnover test. From 1 July 2015, if implemented as announced, the super clearing house will be accessible by employers with an annual turnover lower than the small business entity turnover threshold, which is currently set at $2 million.
The Government says this will save employers $20 million.
“This single measure will provide approximately 27,500 additional small businesses with a cost free solution to help them meet their superannuation obligations,” said Bruce Billson, the Minister for Small Business.
The Government says this measure will reduce ‘red-tape’. However it will likely make it more difficult for an employer to determine if they can use the super clearing house. The existing test is a simple count of the number of employees, including full-time, part-time and casual. Under the new test employers may have to estimate their turnover for the current year. Hopefully the rules will be written in such a way as to reduce uncertainty.
The government super clearing house allows eligible employers to make a single transaction, with the clearing house then making the transactions to each separate superannuation fund. The small business super clearing house is run by the ATO and aims to make it easier for small businesses to meet the super guarantee obligations. Since the super clearing house was transferred to the ATO the number of businesses signed-up has increased by 24%.
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