Free clearing house for small businesses

Small business operators will have access to a free superannuation clearing house service from July 2010.

The service will be delivered through Medicare Australia, the federal government announced on Friday.

Employers with fewer than 20 staff will be able to use the service that aims to reduce the paperwork burden of paying contributions into numerous superannuation funds.

"It will cut this red tape burden by enabling small businesses to pay their superannuation contributions electronically to a single location," Superannuation Minister Chris Bowen said in a statement.

The service - budgeted to cost $16.1 million - will be reviewed at the end of its initial three-year operation.