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:

  1. 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
  2. Complete and lodge the SG Amnesty Fund payment form, and the ATO will contact you to arrange a payment plan.

For more information, please visit the ATO website. If you have any queries or require assistance, please contact us today at Advivo on +61 7 3226 1800, or you may use our Contact Form!