Author: Mark Fletcher

Superannuation payments are expensive for small businesses to administer. The time spent managing the accounts, making payments to various funds, responding to funds and responding to individual queries costs time, often time a small business owner pays for on an hourly basis with an accountant or bookkeeper.

My suggestion is that instead of employers paying direct to the funds nominated by employees, we make one lump sum payment at the time of payroll or PAYG or GST payment to a government agency which then disburses to the funds as per the direction of the employees. I see the agency as a clearing house, run on a tight budget with all transactions done electronically.

Setup right, the clearing house agency could reduce the time spent by the Tax Office on Superannuation compliance. In the ATO they look for a default or crime which may have occurred but for which they have no evidence. My clearing house idea would provide immediate visibility of missed deadlines and thereby offer savings to government overhead – as well as to business operators. While I am no economist, I expect the government could fund the clearing house out of ATO savings.

The clearing house would make it easier for employees as they would have one place to go to track super and thereby, be less likely to lose track of funds.

My suggested approach would save considerable time in small businesses not only on the payments front but also on dealing with compliance challenges. For example, I have heard of businesses spending thousands on super audits only to have no problem found.  Such audits would be eliminated and that money saved for the victim small business owner.

I expect superannuation funds would benefit from the clearing house approach as they would have one place to go to check information they currently seek out from businesses across the country.

The only downside to the proposal is that business owners could not delay making super payments. The benefits outweigh the cost in my view.

I have received several calls this week from newsagents in particularly tough situations. Each was different yet each could have benefited from earlier engagement. While not every challenge can be resolved, I think we need to be better at confronting them.

Here’s a video I shot yesterday to briefly explore this further.

36 newsagent suppliers have booked so far to participate in the forums I have organised for next week to discuss how they can help newsagents navigate to a brighter future. Click here to download a booking form.

Data will be shared to help supplied have meaningful talks on how they can contribute to a healthier newsagency channel. Newsagents can grow their businesses. Suppliers can nurture optimism.

I’d love to see more suppliers participating – and newsagents too. Book here: Melbourne. March 17, 9am. Best Western, Kew. Sydney. March 18, 9am. Bonnie Doon Golf Club. Brisbane, March 19. 9am. River View Hotel.