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17/12/2010; Free superannuation clearing house for small businesses

The Australian Government is offering a free super clearing house service to small businesses with less than 20 employees.

This service is free, optional and is designed to reduce red tape and compliance costs for small businesses when meeting their superannuation guarantee obligations.

The Small Business Superannuation Clearing House is administered by Medicare Australia and enables you to pay your employees’ superannuation benefits into one location in a single transaction, after which the Clearing House will distribute the employees’ benefit to their nominated financial institution.

This service also provides a reporting function that allows you to access records of your contribution history.

Essentially the service whilst aiming to reduce the administration costs also hopes to reduce the associated time when businesses must contribute into numerous superannuation funds.

It has been in place since July 10, and businesses need simply to register via the Medicare website.

So get on board and use this service to help you meet your superannuation obligations, minus the financial and time costs

Posted on 17 November '10 by , under Business.

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Transition to retirement

The transition to retirement (TTR) strategy allows you to access some of your super while you continue to work.

You are able to use the TTR strategy if you are aged 55 to 60. You can use it to supplement your income if you reduce your work hours or boost your super and save on tax while you keep working full time.

  • Starting a TTR pension: To start your TTR pension, transfer some of your super to an account-based pension. You have to keep some money in your super account so that you can continue to receive your employer's compulsory contributions as well as any voluntary contributions you may be making.
  • Government benefits and TTR: The benefits you or your partner receive might be impacted if you choose to opt for this strategy. How and what exactly will change might become clearer upon discussing this with a Financial Information Service (FIS) officer.
  • Life insurance and TTR: In some cases, the life insurance cover you have with your super may stop or reduce if you start a TTR pension – check this before making any decisions or changes.

TTR can help ease your mind as you transition into retirement but it can be a bit complex. Before you choose whether you want to use TTR to reduce work hours or save on tax, or even if you want to use TTR altogether, you should figure out how this will impact all aspects of your finances.

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