The Superannuation Guarantee (SG) Amnesty Bill has now passed both houses, with employers set to get six months to disclose historical non-compliance before tougher penalties apply…
The long-awaited Superannuation Guarantee (SG) Amnesty Bill has passed Parliament and is now awaiting Royal Assent to become an Act. The amnesty period will start from 24 May 2018 and end six months from the date it receives Royal Assent.
What is SG amnesty and why is it important to employers?
The SG amnesty provides a one-off amnesty to allow employers to self-correct historical SG non-compliance (SG shortfalls) dating from 1 July 1992 to 24 May 2018.
For employers, this means:
- Claiming tax deductions for payments of SG charge or contributions made during the amnesty period to offset SG charge
- Receiving a remission of the administration fee component of the SGC liability ($20 per employee per quarter without amnesty)
- Receiving a remission of any Part 7 penalties for failure to lodge an SGC statement (penalty can be up to 200% of the SGC)
- Directly paying the unpaid superannuation to the employees’ funds, rather than through the ATO.
Approximately 7,000 employers have come forward to voluntarily disclose historical unpaid superannuation since the amnesty was first announced on 24 May 2018. Treasury estimates an additional 7,000 employers will come forward during the amnesty 6-month period, returning $230 million of superannuation to employees.
What if an employer is caught with SG shortfall after the amnesty 6-month period?
Employers who fail to come forward during the amnesty period will likely be subject to higher penalties and strong enforcement by the ATO. If you employ people and believe that you may have underpaid superannuation, we recommend that you take advantage of this amnesty before it expires 11:59 PM 7 September 2020.
Contact Us today for further assistance and to explore your options!