On 26 November 2014, the Minister for Small Business, the Hon Bruce Billson MP, announced that from 1 July 2015, employers will no longer be obligated to give a standard choice of fund form to temporary residents or provide this form to employees when their superannuation funds merge.
Treasury is now seeking comments from interested parties on the proposed legislation, and the accompanying explanatory memorandum, to implement this announcement.
These changes to the choice regime will reduce the compliance burden on businesses, especially small businesses. In particular, employers will no longer incur the choice shortfall penalty if they do not provide a standard choice of fund form to their employees in these situations.
These changes also complement the Government’s announcement that access to the small business superannuation clearing house (SBSCH) will be expanded from 1 July 2015. From 1 July 2015, all businesses with an annual turnover below the small business entity turnover threshold, currently set at $2 million, will be eligible to access SBSCH. This change means approximately 27,500 additional businesses will be able to access the SBSCH.