ASFA calls for small business to adopt super standard on time
The Department of Human Service's Small Business Superannuation Clearing House (SBSCH) obviates the need for an extension of small businesses' obligations under the Federal Government's superannuation data and payment standard, the Association of Superannuation Funds of Australia (ASFA) has said in a submission to the Australian Taxation Office (ATO).
ASFA said the free service provided by the SBSCH would be compliant with the standard by 1 July 2014 and therefore small businesses did not need an extension beyond 1 July 2015.
The full benefits of the standard would not be met unless all industry players operated under the same auspices, according to ASFA.
"The proliferation of multiple superannuation contribution processes beyond 1 July 2015 will detract significantly from the ability of all players in the superannuation system realising the intended efficiency gains," it said.
ASFA supported clarity on the linkages between the standard and small businesses' ability to process contributions through the SBSCH. It said a separate section on 'gateways' was necessary to iron out and make clear the smaller details.
The Coalition of Small Businesses of Australia (COSBOA) has been lobbying the Government to combine PAYG with super contributions to lessen the reporting burden on the small business sector.
The Government, at a superannuation forum two months ago, did not concede to COSBOA's demand but did make a promise to better promote its SBSCH.
ASFA had a number of other issues with the standard, including proposing a separate section for self-managed super funds' 'special arrangements' and specific statements regarding removing cheques from the super payment system.
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