The superannuation guarantee (SG) amnesty is now law & provides employers with a one-off opportunity to “self-correct.” Now is the time to ensure that your payroll is correct and there are no hidden SG issues looming.
The amnesty applies from 24 May 2018 (the date of the original announcement) until 6 September 2020 which is 6 months after the legislation received Royal Assent. Employers will have this period to voluntarily disclose underpaid or unpaid SG payment to the Commissioner of Taxation.
Employees will now be able to avoid fines for unpaid super under the amnesty but will still have to repay the superannuation owed to their employees & a 10% interest fee. The administration fee of $20 a quarter for each employee will also be waived & payments will be tax deductible.
Penalties are likely to be further increased following the amnesty. Advances in payroll technology & reporting meant that the ATO was getting more information about who had not paid the super guarantee.
The amnesty applies to historical underpaid or unpaid SG for any period up to the March 2018 quarter.
To qualify for the amnesty, employers must disclose the outstanding SG to the Tax Commissioner. You either pay the full amount owing, or if the business cannot pay the full amount, enter into a payment plan with the ATO. If you agree to a payment plan and do not meet the payments, the amnesty will no longer apply. The amnesty only applies to “voluntary” disclosures.
Please contact us today if you would like to discuss or for us to help to apply for the amnesty.