Assistant treasurer Arthur Sinodinos and Minister of Small Businesses Bruce Bilson, announced this week that the Australian Taxation Office (ATO) will take over the running of the Small Business Superannuation Clearing House.
The move as they said is part of the Government’s commitment to cut $1 billion worth of red-tape out of the economy and will make life easier for small business as they already have dealings with the ATO.
“The ATO is best placed to increase the take up rate of the clearing house as they have access to data on who is eligible for this free service”, they said.
The Small Business Superannuation Clearing House is a free online service that helps small businesses with 19 or fewer employees meet their superannuation guarantee obligations by allowing employers to pay superannuation contributions in one transaction to a single location to reduce red tape and compliance costs.
The move, as both ministers stated will be followed by an extensive stakeholder consultation process so the federal Government can better understand superannuation compliance cost concerns and develop further options to reduce these costs.
An app will also be launched by the ATO in a further effort to assist small business. Using mobile devices, small businesses for example will be able to find out if their worker is an employee or contractor for tax and super purposes.