Ursula Stephens (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business, Senator Sherry. Can the minister outline to the Senate how the government is helping ease the red tape burden on small businesses and, in particular, what system the government has in place to help small businesses deal with their superannuation obligations to em­ployees? How is this system saving time and money for small businesses?

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

When the conversation at the front has ceased I might be able to call the minister to answer the question. The Minister for Small Business, Senator Sherry.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thank you, Mr President. I thank Senator Stephens for her very important question. The Gillard government has—and I have outlined this on previous occasions—an extensive reform agenda in respect of deregulation. One deregulatory simplification that this government has introduced is called the Superannuation Clearing House. As senators, including Senator Stephens, would recall, last year we introduced this service to solve the red tape created for small business when the former Liberal-National government introduced choice of fund into the superannuation system. This imposed significant new regulatory and compliance requirements on business which were particularly onerous for small business.

The clearing house that the Labor government has introduced is administered by Medicare Australia. It is free and it is simple to use. The take-up for the clearing house service has been growing steadily since it was introduced on 1 July last year. It will continue to grow as more and more businesses—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Tell us the numbers!

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

If you will be quiet, Senator, I will get to the numbers. At the beginning of this month, 4,300 employers were registered with the clearing house and they are clearing almost 30,000 employees with 84,000 employee pavements being made through the system. Some $45 million has been remitted by small business employers and disbursed to superannuation funds.

We know about the onerous obligations that were imposed on employers by the previous government in respect of superannuation choice. It discharges employ­er super guarantee obligations when the money reaches Medicare, so it removes the previous legal obligations imposed. It takes all types of super contributions: personal, salary sacrifice, not just SG. It accepts super payments— (Time expired)

Ursula Stephens (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate what the response is from small business to the clearing house and the other measures that have been taken by the government?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

mentioned the onerous new regulatory obligations that were impos­ed by the previous Liberal-National gov­ernment on employers. When we presented the solution to the Senate the opposition opposed it. They opposed this important simplification.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Yes, it's very unpopular.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Let me get to popularity. I am glad to hear Senator Mathias Cormann interjecting. Let us get to popu­larity: we have done a satisfaction survey of the clearing house which the Labor government introduced. Ninety per cent of respondents said they would recommend the clearing house to other small businesses. Ninety-six per cent of respondents strongly agreed or agreed the clearing house has reduced the time it takes to make their superannuation payments. Three-quarters of these said it saved them up to three hours per quarter, 15 per cent said up to seven hours and nine per cent said they have saved up to eight hours per quarter in terms of the superannuation obligations imposed by the previous Liberal-National government. (Time expired)

Ursula Stephens (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of any alternative policies and the risks that any such policies might contain?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Believe it or not the Liberal and National parties actually announced a new policy last week to introduce a superannuation clearing house, like the one I have just been talking about. The Labor Party, having introduced the Medicare Superannuation Clearing House, the Liberal Party decided to come up with a great new policy—very rare, I know!—and introduce a superannuation clearing house through the ATO. What we have is the Liberal and National parties, having created the problem for small business in the first place, having opposed the Labor Party's solution to introduce a superannuation clearing house, deciding on a great new policy to introduce a superannuation clearing house! You might wonder what the logic is of introducing two new clearing houses and the cost of theirs will be $257 million. (Time expired)