Jason Armstrong

aist.asn.au

Jason Armstrong

Small Business

Superannuation

Clearing House

Presented by Jason Armstrong

May 2013


Small Business Superannuation

Clearing House

Page 2

Background

• In the 2008-09 Budget, the Government announced that it would

implement its 2007 election commitment to establish a free

superannuation clearing house facility that could be used by businesses

with 19 or less employees.

• The Department of Human Services (DHS), previously Medicare

Australia, designed and developed the Small Business Superannuation

Clearing House (the Clearing House).

• The purpose of the Clearing House is to support small businesses to

reduce red tape and compliance costs associated with meeting their

superannuation guarantee obligations under the choice of fund policy.

• The Clearing House was implemented in May 2010 and started

receiving payments in July 2010.


Small Business Superannuation

Clearing House

Page 3

What is the Clearing House

• The Clearing House is a free online service that assists small

businesses to meet their superannuation obligations

• The service allows employers to make one single secure electronic

payment to the Clearing House for all their employees, minimising the

time and paperwork involved in allocating contributions to numerous

funds

• The Clearing House is available to businesses with 19 or fewer

employees. An employee is defined as an individual who is employed on

a full-time, part-time or casual basis


Small Business Superannuation

Clearing House

Page 4

Key benefits for small businesses

• It’s free and easy to use

• Employers can make one single secure electronic transaction

• It’s convenient and flexible for businesses and can be used on a

quarterly, monthly or weekly basis

• It reduces the time and paperwork involved in making multiple payments

to numerous superannuation funds

• It’s accessible 24/7

• The system provides detailed reports for all contributions made

• Once the payment is accepted by the Clearing House, the employer has

met their superannuation guarantee obligation


Small Business Superannuation

Clearing House

Page 5

Co-Design

• Co-design is working with our customers to design, shape and deliver

better services for the community.

• The Clearing House design consulted with industry groups and small

business

• We continue to consult, refine and enhance the service


Small Business Superannuation

Clearing House

Page 6

What employers are saying about the Clearing House

• The Department of Human Services regularly contacts small businesses

registered with the Clearing House to offer assistance and conduct a

short customer satisfaction survey.

• As at April 2013:

98% of respondents rated their overall service satisfaction as

‘extremely satisfied’ or ‘satisfied’

96% of respondents ‘strongly agreed’ or ‘agreed’ the Small Business

Superannuation Clearing House reduced the amount of time it takes

to make their superannuation payments

98% of respondents said they would recommend the Clearing House

service to other small businesses

Recently included free text field for Businesses to have ‘Their Say’


Small Business Superannuation

Clearing House

Page 7

What employers are saying about the Clearing House

• The Clearing House is brilliant. It’s saving time, it’s streamlined, it’s straightforward. All you have to do is

enter the information and the rest is taken care of. Marina Grant – owner of Grant Violins

• If any issues crop up, the department has called me instantly and sorted it out within 15 mins. The

support from Human Services has been fantastic. Manager – production company

• Now having all my employees’ superannuation information in the one place makes it much easier to

meet superannuation obligations. With the Clearing House, I can be confident my employees will receive

the correct super at the correct time. Quil Bryar – Office Manager of JBA Consulting Engineers

• Signing up to the Clearing House was easy and now it takes about five minutes a month to pay super – it

is so easy. Lucinda Hudson – Finance Manager of Brand Connect


Small Business Superannuation

Clearing House

Page 8

Our Customers

Of this

80% of respondents said using the Clearing House saves them up to

3 hours per quarter.

5% of respondents said using the Clearing House saves them

between 4 and 7 hours per quarter

5% of respondents said using the Clearing House saves them more

than 8 hours per quarter.


Small Business Superannuation

Clearing House

Page 9

Clearing House performance

• As of April 2013:

Over 39 900 small businesses are registered to use the service

More than 308 000 employees are registered with the service via

their employer

Over 1.45 million employee payments have been made

More than 6400 superannuation funds have registered with the

service

Over $876 million has been remitted by small business employers

and disbursed to nominated superannuation funds

Won the 2011 Prime Minister’s Gold and Innovation awards for

Excellence in Public Sector Management


Small Business Superannuation

Clearing House

Page 10

Clearing House performance

SBSCH - Cumulative Payments

$1,000,000,000

$900,000,000

$800,000,000

$700,000,000

$600,000,000

$500,000,000

$400,000,000

$300,000,000

$200,000,000

$100,000,000

$0

Jul-10

Sep-10

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Jan-13

Mar-13


What’s in store for the

Clearing House


Small Business Superannuation

Clearing House

Page 12

SuperStream reforms

• All small businesses (with 19 or fewer employees) will be required by

law to use the new standard for sending contributions from 1 July 2015.

The Department of Human Services has commenced work on

implementing the SuperStream changes to the Clearing House to be in

place before 1 July 2015

• When fully implemented these reforms will make the use of the Clearing

House even easier for superannuation funds and seamless for small

businesses. Australian employees will see their superannuation payment

benefits maximised as monies will be allocated faster


Questions

visit: www.humanservices.gov.au/smallbusinesssuper

email: SBSCHenquiries@humanservices.gov.au

phone: 1300 660 048*

*call charges apply

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