On the May 24 2018, Kelly O’Dwyer, the Minister for Revenue and Financial Services announced the commencement of a 12 month Superannuation Guarantee Amnesty (the Amnesty).
This is a one-off opportunity for employers to correct past super guarantee non-compliance without facing penalty.
Subject to the passage of legislation, the amnesty will run for twelve months from 24 May 2018. This amnesty would allow such payments to still be tax deductible. Under the current rules, any discovered late payments are not tax deductible.
Any employer who voluntarily discloses their previously undeclared Superannuation Guarantee (SG) shortfalls during the Amnesty and before the commencement of an audit of their SG will:
- Not be liable for the administration component and penalties that may otherwise apply to late SG payments, and
- Be able to claim a deduction for catch-up payments made in the 12 month period.
Employers must pay all employee entitlements, including the unpaid SG amounts owed to employees and the nominal interest, as well as any associated general interest charge (GIC).
The Amnesty applies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018. The Amnesty does not apply to the period starting on 1 April 2018 or subsequent periods.
Any employer who is not up-to-date with their superannuation guarantee payment obligations to their employees and who don’t come forward during this Amnesty may be subject to higher penalties in the future – generally, a minimum of 50% on top of the SG charged owed, O’Dwyer said.
If you can pay the full SG amount directly to your employees’ super fund(s) then you can complete a payment form and submit to the Australian Taxation Office (ATO) through their electronic business portal.
If you find that you are unable to pay the full amount, then you can complete and lodge a payment form wherein the ATO will contact you to discuss a payment plan. You can start payment before the ATO contacts you and this will reduce the GIC you would have to pay.
For more information visit the ATO’s website
https://www.ato.gov.au/Business/Super-for-employers/Superannuation-Guarantee-Amnesty/
