Super clearing house has advantages
The degree to which small to medium-sized employers will be better off under the Federal Government’s new superannuation clearing house arrangements has been made clear with the launch of the necessary legislative amendments.
The amendments to three pieces of superannuation legislation were announced by the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen. Employers run a much smaller risk of being penalised by the new system.
The legislative outline reveals that employers will be deemed to have fulfilled their superannuation guarantee obligations the moment a payment is received by the new clearing house, rather than by the destination fund – effectively removing the risk of penalties being imposed on employer.
The Government announced earlier this month that the clearing house would be delivered through Medicare Australia and was intended to be up and running from July 2010.
Under the existing legislative regime, employers can run the risk of incurring penalties if superannuation guarantee payments they have made are received by a clearing house but not received within the prescribed period of time by an employees’ superannuation fund.
The Government is seeking to facilitate the changes via amendments to the Superannuation Guarantee (Administration) Act, the Retirement Savings Accounts Act and the Superannuation Industry (Supervision) Act.
AUTHOR
Mike Taylor
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
