An overwhelming majority of people will face debt at some point in their life.
Uncontrolled debt can easily snowball and severely impact an individual’s lifestyle and financial freedom.
Fortunately, debt is manageable and is often contingent upon an individual’s motivation to get rid of debt fast. Tackling debt is often a process of managing expenses against income and formulating a plan of attack. Here are three ways to get out of debt faster:
Stick to a budget
If you are looking to get out of debt quickly, it is critical to stick to a budget. A budget can help you achieve your financial goals and ensure you do not spend more money than you earn. Budgeting is a great way to review your current expenses and see where you can realistically cut costs. It is also a good way of allocating money for an emergency fund i.e savings for a medical emergency etc.
Don’t borrow more money
Although it seems glaringly obvious, it can be tempting to continue down the borrowing spiral. Avoid getting into any further debt by holding off financing more items, signing up for credit cards etc. Instead, focus on paying off your current debts and necessary living expenses and try to eliminate any unnecessary expenses, such as TV subscriptions, daily takeaway coffee and so forth.
Make extra repayments (if possible)
Any excess cash you receive, i.e tax return, ideally should go towards making extra repayments. Making extra repayments not only shortens the length of time to pay off your debt but saves you paying more money on interest. Be sure to check with your credit provider if extra fees will be incurred for extra repayments.
For small businesses in Australia, managing superannuation payments for employees can be a time-consuming and complex task.
Super guarantee payments must be made quarterly, with the next due date being the 28 April.
However, the Australian Taxation Office (ATO) offers a solution in the form of the Small Business Superannuation Clearing House (SBSCH).
This online service simplifies paying super contributions for employees, providing small businesses a convenient and efficient way to meet their super obligations.
Let’s explore the SBSCH’s features and benefits and how small businesses can use this tool to streamline their super payments.
What is the Small Business Superannuation Clearing House (SBSCH)?
The Small Business Superannuation Clearing House is a free online service the ATO provides to help small businesses meet their superannuation obligations.
It allows employers to pay super contributions for their employees in one transaction, regardless of the number of funds they contribute to.
The SBSCH acts as a central hub where employers can lodge their super payments, which are then distributed to the respective employees’ super funds.
You’re eligible to use the Small Business Superannuation Clearing House (clearing house) service if your business has either:
19 or fewer employees, or
annual aggregated turnover of less than $10 million.
You must meet one of these eligibility criteria each time you use the service.
Features and Benefits of the SBSCH:
Consolidated Payments: Employers can consolidate all their super contributions into a single transaction through the SBSCH instead of making separate payments to multiple super funds. This simplifies the payment process and reduces administrative burden for small businesses.
Accessibility: The SBSCH is accessible 24/7 through the ATO’s online services portal. Employers can log in to the portal anytime to submit their super payments, providing flexibility and convenience.
Secure and Confidential: The SBSCH employs strict security measures to ensure the confidentiality and integrity of employers’ financial information. All transactions are encrypted and protected by robust security protocols, giving employers peace of mind when making super payments.
Compatibility with Different Payment Methods: When using the SBSCH, employers can choose from various payment methods, including electronic funds transfer (EFT), BPAY, and direct debit. This flexibility allows businesses to select the best payment method for their needs and preferences.
Integration with Business Accounting Software: The SBSCH is compatible with most business accounting software, making it easy for employers to integrate super payments into their existing financial workflows. This seamless integration reduces manual data entry and streamlines the payment process for businesses.
How to Use the SBSCH
Using the Small Business Superannuation Clearing House is straightforward and user-friendly.
Employers can follow these simple steps to make super contributions for their employees:
Register: Employers need to register for the SBSCH through the ATO’s online services portal. Registration is free and only takes a few minutes to complete.
LogIn: Once registered, employers can log in to the SBSCH portal using their unique credentials.
Enter Payment Details: Employers need to enter the payment details, including employee information, contribution amounts, and payment method.
Submit Payment: After verifying the payment details, employers can submit the super contribution payment through the SBSCH portal.
Receive Confirmation: Upon successful submission, employers will receive a confirmation receipt confirming that the super contributions have been lodged with the SBSCH.
The Small Business Superannuation Clearing House (SBSCH) is a valuable resource for small businesses in Australia. It offers a simple and efficient way to manage employee super contributions.
By leveraging the SBSCH’s features and benefits, businesses can streamline their super payment process, reduce administrative burden, and ensure compliance with their superannuation obligations.
For small business owners looking to simplify their superannuation management, the SBSCH is a practical and accessible solution provided by the ATO. 4
Need further assistance with meeting your superannuation guarantee payment dates and submitting? Speak with a trusted advisor.
