What is Superannuation Guarantee Amnesty?
In May this year, the government announced the start of a Superannuation Guarantee Amnesty. The Amnesty is a one-off opportunity for employers to self-correct any past super guarantee (SG) non-compliance without receiving a penalty. Any catch-up payments made in the 12 month period will also be tax-deductible. The Amnesty applies to all previously undeclared SG shortfalls for the period 1 July 1992 to 31 March 2018. At this stage the Amnesty is only a proposal subject to legislation passing, it will be available from the 24th of May 2018 to 23rd May 2019.
Am I Eligible?
To be eligible for the Amnesty you must:
- Disclose your SG shortfall amount including nominal interest to the ATO within the 12 month Amnesty period.
- Disclose amounts of SG shortfall that have not previously been disclosed.
- Not be subject to an audit of your SG for the relevant periods.
- Have or suspect you may have a Superannuation Guarantee shortfall (SG shortfall) – if you aren’t sure please contact us and we can investigate this for you.
The Benefits?
The benefits of taking part in the Amnesty include:
- Not being required to pay for the administration component of the super guarantee charge.
- All catch-up payments made during the 12-month Amnesty period will be tax-deductible.
- Peace of mind that your employee superannuation obligations are all up to date and you have reduced the risk of an unexpected future expense.
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.
How Can I Take Part?
To take advantage of the Amnesty and avoid paying any General Interest Charges (GIC), you need to:
- If you can, make a full payment of the shortfall and nominal interest to your employees’ super fund (or funds). Complete the payment form and submit it the ATO electronically through the business portal OR
- Complete and lodge the SG Amnesty Fund payment form, and the ATO will contact you to arrange a payment plan.
