International Law

Superannuation clearing house

By David Jacobson

The Government has introduced the Tax Laws Amendment (2010 Measures No.1) Bill into Parliament to provide the legislative framework for its optional superannuation clearing house service for small business.

The amendments allow employers to meet their obligation to promptly remit superannuation amounts deducted from employees’ wages by paying them to the approved clearing house.

The amendments also extend the conditions under which superannuation contributions are made in compliance with the choice of fund rules to cover contributions made through the approved clearing house, and allow for the disclosure of taxpayer information to the approved clearing house for the purpose of performing its functions.

On 6 November 2009, the Government announced that its superannuation clearing house service for small business will be delivered through Medicare Australia. Following the passage of the Bill, a regulation will be made specifying Medicare Australia as the approved clearing house for the purposes of the legislation.

The clearing house service will be available to eligible small businesses (those with fewer than 20 employees) from July 2010. Businesses will be able to register with Medicare Australia from May 2010.

Full post as published by Australian Regulatory Compliance Review on February 13, 2010 (boomark / email).