Small business employers (those with less than 20 employees) may soon be relieved of the costly and time consuming burden of paying superannuation guarantee contributions into numerous superannuation funds.

On 10 February 2010 the Government introduced the Tax Laws Amendment (2010 Measures No. 1) Bill ("the Bill") into Parliament to provide small businesses an optional free superannuation clearing house service.

The proposed clearing house is Medicare Australia.

Small business employers who choose to use the clearing house service will only need to pay their superannuation contributions electronically, and the clearing house will then distribute payments to the nominated superannuation funds accordingly. Their legal obligation to make superannuation contributions will be discharged if the correct amount of payment is made to the clearing house.

The Senate has referred the Bill to the Senate Economics Committee for further investigation into potential anti-competitive issues and will produce its report by 15 March 2010.

Lewis Holdway Lawyers welcomes the creation of a free superannuation clearing house service as it will provide long-awaited relief for small business employers in their superannuation guarantee duties.