Minister for Financial Services and Superannuation Bill Shorten and Minister for Small Business Brendan O’Connor welcomed yesterday’s passage of legislation through the House of Representatives that reduces red tape in superannuation.
The measures contained in the Superannuation Legislation Amendment (Stronger Super) Bill 2012 implement changes recommended by the Cooper review into Australia’s superannuation system.
“The super system can be difficult to use for employers as each fund has its own data requirements and processes. These reforms will remove the need for employers to provide different information (or in a different format) to different funds,” Mr Shorten said.
“These reforms cut red tape for small business owners and make it easier for employers to manage their employees’ entitlements,” Mr O’Connor said.
The bill:
- introduces a framework to support the implementation of superannuation data and payment standards that will apply to superannuation transactions undertaken by superannuation funds and employers; and
- enables costs to Government associated with the implementation of the SuperStream measures to be recovered by a levy on APRA regulated funds.
The Government considers it important that there is close consultation with industry, unions and employers on the implementation of SuperStream and is establishing a SuperStreram Advisory Council.
SuperStream is a package of reforms that will improve the operation of the superannuation system, making it easier for members to keep track of and consolidate their superannuation accounts and making the system more efficient by streamlining the operational processes for funds and employers. Industry submissions to the Review estimated savings to the industry of up to $1 billion are achievable through the reforms.
Small businesses can also save up to eight hours of paperwork a quarter by using the Small Business Superannuation Clearing House, a free service which allows them to pay their employees’ entitlements into various funds in one simple online transaction.