Once Off Opportunity to Catch Up On Super Obligations

June 13, 2018

 

 

On 24 May 2018, the government announced the start of a Superannuation Guarantee Amnesty. The Amnesty will be available retrospectively from 24 May 2018 to 23 May 2019, subject to legislation passing.

 

The Assistant Treasurer said "We are introducting this one-off amnesty to allow employers to wipe the slate clean and pay their workers what they're owed.  All Australian workers should be paid the entitlements they are owed"

 

The Amnesty gives employers a one-off opportunity to self-correct past super guarantee (SG) non-compliance without penalty. Normally, superannuation guarantee charge payments are non-tax deductible.  However under the amnesty, catch-up payments made in the 12 month period will be tax-deductible.

 

To be eligible for the Amnesty and avoid harsher penalties your clients must:

  • disclose their SG shortfall amount including nominal interest to us within the 12 month Amnesty period

  • not be subject to an audit of their SG for the relevant periods.

Employers that do not take advantage of the amnesty will have higher penalties when they are subsequently caught, in general a minimum 50% on top of the SG charge they owe. 

 

This measure is in addition to other reforms including 

  • The ability to seek penalties of up to 12 months jail where employers defy directions to pay their SG liabilities

  • Requiring Superfunds to report contributions received more frequently to the ATO to enable identification of non-compliance and prompt action

  • Introducing Single Touch Payroll - applying from 1 July 2018 for employers with greater than 20 employees, and from 1 July 2019 for everyone else. 

  • Improving the ATO recovery powers including director penalty  notices

  •  

To take advantage of the Amnesty with an added benefit of not paying any general interest charge (GIC), you need to:

  • make full payment of the shortfall and nominal interest to the employees' super fund (or funds) and

  • complete and lodge the SG Amnesty Fund payment form.

Alternatively, you can complete and lodge the SG Amnesty ATO payment form to enter into a payment plan with the ATO. GIC will apply.

 

Refer ATO Superannuation Amnesty

 

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