The Coalition’s plans for the tax office to process superannuation payments on behalf of small business have been welcome by the Council of Small Business Organizations of Australia (COSBOA). This proposal has been dubbed as the “first real removal of red tape for the sector in memory.”
The coalition proposes that small businesses will be allowed to transfer its total employee entitlements to the Australian Taxation office and the Taxation Office will distribute the payments to the relevant super funds.
According to COSBOA Executive Director, Peter Strong, this proposal will save time, effort and money for SME’s.
“It's so sensible; there are no losers. We've been pushing this for years,” says Strong.
Furthermore, Strong says that the government’s current superannuation clearing house is a “good thing”. However, it is not easy to engage and the businesses that are best suited to it are just too busy to try it.
The system, according to the government, is simple, free, and available to companies with less than 20 employees. There have already been 4,356 who have signed up with the clearing house as of June 3. Around 28,855 employees have been added to the system while 84,025 employee payments have been made.
“People would say that's not much, but it's my time,” says Strong.
“Super is one of the biggest problems when employing somebody: who are they a member of and becoming a kind of financial adviser by having a default fund in place,” Strong adds.
Small Business Minister, Nick Sherry, says that the Coalition would stop mindlessly opposing their tax cuts for two million small businesses if it truly cared for them.
“Today's announcement by Tony Abbott is just more empty and hollow words, which can't be believed,” said Sherry.
News Source: Smart Company »