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ATO to take over compulsory super payments
Small businesses will be able to make compulsory superannuation payments directly to the Australian Taxation Office (ATO) after the Government announced the ATO would be taking over the running of the Small Business Superannuation Clearing House (SBSCH) from Medibank in a bid to reduce the compliance burden employers face when making superannuation contributions for their workers.
"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," the Treasury said.
The Coalition made amendments to compulsory super payments in July last year, which was welcomed by the Council of Small Business of Australia.
The SBSCH is a free online service for businesses with 19 or fewer employees which lets employers pay superannuation contributions in one transaction to a single location to reduce compliance costs.
The move is part of the Government's bid to cut $1 billion in red tape.
A stakeholder consultation process will follow to understand compliance cost concerns and develop further options to reduce costs.
The ATO is also launching an app for mobile devices where small businesses can see if their worker is an employee or contractor for tax and super purposes; use the payment plan estimator to simulate a payment plan for an ATO debt; and get news and updates and answers to frequently asked questions.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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