Superannuation contributions to employees of small businesses can now be issued via Australia Post branches, the government-owned mail corporation has announced.
In an effort to “cut red tape”, more than 3,200 post offices across Australia will now provide the service, allowing employers to make super payments at branches in cheque or cash form at no additional cost.
“The Australia Post superannuation service means small businesses will have the convenience of paying both choice and default superannuation contributions while visiting Australia Post outlets for many of their small business needs,” said Andrew Maitland, acting executive GM at Australia Post.
“With a single payment, Australia Post will be able to simplify superannuation payments and ensure each employee gets their individual contributions,” he added.
The service will also allow for multiple payments to be made into a number of funds if necessary, a feature Australia Post said may affect a “large percentage of small businesses”.
AMP has put its hand up as the first default fund to use the Australia Post service, following its adoption of the Australia Post Digital MailBox service.
The launch comes alongside the federal government’s ‘SuperStream’ review into the superannuation industry, which champions technology-based reform of the super contribution payment process.
By July 2015, small businesses – that is, those with less than 20 employees – are required to upgrade internal payroll systems to meet new contribution payment standards.
However, the Department of Human Services has initiated a free Small Business Superannuation Clearing House to help small businesses comply with the new requirements by streamlining super payments on their behalf.
