Super clearing house service unlikely to go live in July

25 February 2010
| By Mike |

The government super clearing house service for small businesses will probably not be up and running by July 2010, according to the managing director of Sage MircOpay, Craig Osborne.

The legislative framework for the service was recently presented in Parliament and Medicare has been tasked to provide this service free of charge to small businesses with less than 20 employees by July 2010.

However, Osborne said not only are the Liberals likely to block it, but the due diligence conducted in deciding which government department would deliver the service was not sound.

Osborne said Medicare was chosen as it already has payment-processing infrastructure, but he asserted that the Liberals would argue that this choice was a rushed attempt to deliver on its 2007 election commitment ahead of the next elections.

“We’ve seen what it takes to set up these types of systems and it is highly unlikely they will be able to pull this off before July 1, even if passed in Parliament,” Osborne added.

“It has taken years for fund clearing service providers in the private sector to achieve and deliver service offerings that are viable and efficient. You cannot assemble a system like this in six months.”

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