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, and is subject to legislation passing.
The Superannuation Guarantee Amnesty gives employers a one-off opportunity to self-correct past super guarantee (SG) non-compliance without penalty. Catch-up payments made in the 12 month period will be tax-deductible.
To be eligible for the Amnesty and avoid harsher penalties you must:
- disclose your SG shortfall amount including nominal interest to the ATO within the 12 month Amnesty period
- not be subject to an audit of your SG for the relevant periods.
The Superannuation Guarantee Amnesty applies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018.
The Amnesty does not apply to the period starting on 1 April 2018 or subsequent periods.
Employers who voluntarily disclose previously undeclared SG shortfalls during the Amnesty and before the commencement of an audit of their SG will:
- not be liable for the administration component and penalties that may otherwise apply to late SG payments, and
- be able to claim a deduction for catch-up payments made in the 12-month period.
Accessing the Superannuation Guarantee Amnesty is a simple process. If you are able to pay the full SG shortfall amount directly to your employees’ super fund or (funds), then complete a payment form and submit it to the ATO electronically through the business portal.
If you are unable to pay the full SG shortfall amount directly to your employees’ super fund or (funds), then complete and lodge a payment form and the ATO will contact you to arrange a payment plan. If you chose to, you can start payment before the ATO contacts you. This will reduce the GIC you would otherwise have to pay.
If you have any questions or need help with completing the payment form please contact us here to discuss.