Superannuation Guarantee (SG) Amnesty

The Government has introduced new legislation that provides a one-off 12-month amnesty to
encourage employers to voluntarily disclose historical Superannuation Guarantee (SG) non-compliance. It applies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018.

Subject to the legislation passing, the Amnesty will retrospectively commence as at 24 May 2018 and last until 23 May 2019.

To be eligible for the Amnesty you must:
• voluntarily disclose amounts of SG shortfall within the Amnesty period –  24 May 2018 to 23 May 2019;
• disclose amounts of SG shortfall that have not previously been disclosed;
• not be subject to an audit of your SG for the relevant periods.

Employers will still be required to pay all employee entitlements. This includes the unpaid SG amounts owed to employees and the nominal interest, as well as any associated general interest charge (GIC).

 

Benefits of the Amnesty include:

  • the administration component of the super guarantee charge (SGC) is not payable;
  • a reduction in penalties will be applied (up to 200%);
  • all catch-up payments made during the Amnesty period will be tax-deductible;
  • the ability to make payments directly into employees’ superannuation funds, rather than channelling these through the ATO.

The Amnesty will not apply to the period from 1 April 2018 onwards.

The ATO advises that employers who are not up-to-date with their SG payment obligations to their employees and who don’t come forward during the Amnesty may face higher penalties in the future.

If you are concerned about your obligations, then call us on 3822 7201.

For further information from the ATO, you can CLICK HERE