Superannuation Clearing House Facility
The Federal Government will provide funding of $16.1 million over three years to set up an optional Superannuation Clearing House Facility to assist in managing employers’ obligations to provide superannuation choice to employees.
The facility will be offered free of charge to small businesses with fewer than 20 employees and on a fee-for-service basis to larger businesses. It will be contracted to the private sector.
The superannuation clearing house will allow an employer to pay their contributions to a single location. The clearing house would then distribute these contributions to the relevant superannuation funds as selected by their employees.
Businesses using the clearing house facility will have their legal obligation to make superannuation contributions discharged when payment of the correct amount is made to the clearing house. The facility will be available from 1 July 2009.
The Federal Government will consult with industry prior to implementing the measure.
