Small Business Superannuation Clearing House (SBSCH)
The Government has followed through with the change to the Small Business Superannuation Clearing House announced in 2014, extending the eligibility to use the clearing house from 1 July 2015.
The Government has released the Mid-Year Economic and Fiscal Outlook (MYEFO), which includes changes to superannuation. In particular, changes to the Superannuation Guarantee Charge and the Small Business Superannuation Clearing House.
MYEFO: Superannuation Guarantee Charge
MYEFO includes changes to the Superannuation Guarantee Charge (SGC) which will “simplify the application of the current Superannuation Guarantee (SG) Charge for the late or short payment of superannuation contributions.”
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.Read More »Super Clearing House to be accessible by more employers
The Small Business Superannuation Clearing House is a government-run online service for small businesses, which helps with the administration of making superannuation guarantee contributions for employees.
The small business superannuation clearing house allows employers to make a single electronic payment, with the clearing house distributing the individual contribution amounts each employee’s superannuation fund.
Businesses are eligible to use the small business superannuation clearing house if they have under 20 employees, defined as “an individual who is employed on a full-time, part-time or casual basis.”