Small business to save millions

Employers may benefit from $20 million in red tape savings when the government expands access to the Small Business Superannuation Clearing House (SBSCH) on 1 July 2015. 

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

The SBSCH is a free online service helping small businesses meet their Superannuation Guarantee (SG) obligations. It allows employers to pay superannuation contributions in one transaction to a single location and helps to reduce red tape and compliance costs.

Since the Abbott government transferred the SBSCH to the Australian Taxation Office, the number of small businesses enrolled to take advantage of the service has increased by 24 per cent. 

Overall, it is thought the change will benefit approximately 27,500 small businesses and result in an annual compliance cost saving of over 76,000 hours. 

Announcing the reforms, Minister for Small Business, the Hon Bruce Billson, said the government was also removing the obligation on business to offer the employees’ choice of fund when it does not make sense to do so.

“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," he said.