The Gillard Government's Small Business Superannuation Clearing House has reached a milestone, passing half a billion dollars in superannuation payments this week.
The Clearing House cuts red tape and costs for small businesses by allowing them to pay all their employees' superannuation contributions in one simple online transaction.
Announcing the milestone, Minister for Human Services Senator Kim Carr said by cutting red tape the service had helped small business owners save up to 32 hours of paperwork a year.
"We have reduced red tape for more than 33,000 small businesses registered with the service," Senator Kim Carr said.
"The Clearing House is about giving small business owners back their time so they can focus on developing what's really important to them – their businesses."
Minister for Small Business Brendan O'Connor said the $500 million milestone demonstrated the confidence of business owners in the Clearing House.
"Small businesses are the backbone of our economy and the Gillard Government is committed to creating the environment in which they not only survive, they thrive," Mr O'Connor said.
"The Clearing House is part of this and owners are telling us they love the service."
Regular monthly surveys consistently show that respondents are either extremely satisfied or satisfied with the service.
"When you're in business, you look for proven ways to improve the way you do things. Here we have 98 per cent of small business owners saying they would recommend this service to other small business owners," Mr O'Connor said.
"This kind of support is very positive."
Minister for Superannuation Bill Shorten said the Gillard Government was proud to be working with small businesses to help deliver decent retirement savings for Australian workers.
"There are half a billion reasons to be proud of the Clearing House, this is a good idea which is working well."
"The Gillard Government is lifting universal superannuation from 9 to 12 per cent, at the same time we are reforming the superannuation system to make it simpler and more efficient for employers and employees."
On average it takes a small business three minutes to register for the Clearing House and an additional three to five minutes to register each employee. After that, superannuation contributions are quick and easy to make.
Executive Director of the Council of Small Business Australia Peter Strong supports the operation of the Small Business Superannuation Clearing House, saying it makes it easier for small businesses to meet their superannuation obligations.
"This is an excellent initiative and we encourage our members to get on board," Mr Strong said.
"We are happy that this cuts out some of the red tape for small businesses and will save time and money."
The Small Business Superannuation Clearing House is administered by the Department of Human Services. For more information and to register, visit the Clearing House's website at humanservices.gov.au/smallbusinesssuper or call 1300 660 048.
Small Business Superannuation Clearing House statistics 10 October 2012
| State | Registered employers | Amounts received & paid |
|---|---|---|
| ACT | 703 | $14 million |
| NSW | 10,544 | $166 million |
| NT | 331 | $6 million |
| QLD | 6,547 | $87 million |
| SA | 2,265 | $32 million |
| TAS | 762 | $11 million |
| VIC | 7,297 | $104 million |
| WA | 4,706 | $80 million |
| TOTAL | 33,155 | $500 million |