A 12 month Superannuation Guarantee Amnesty (the Amnesty) was announced on 24 May 2018. The Amnesty is a one-off opportunity for employers to self-correct past super guarantee (SG) non compliance without penalty.
To be eligible for the Amnesty you must:
voluntarily disclose amounts of SG shortfall for any period from 1 July 1992 up to 31 March 2018 within the 12-month Amnesty period – between 24 May 2018 and 23 May 2019;
disclose amounts of SG shortfall that have not previously been disclosed;
not be subject to an audit of your SG for the relevant 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 of the super guarantee charge (SGC) and penalties that may otherwise apply to late SG payments;
be able to claim a deduction for catch-up payments made in the 12-month period.
Employers who do not disclose their SG shortfall may face higher penalties in the future.
Accessing the 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, then complete and lodge a payment form and we will contact you to arrange a payment plan
How will this effect employees?
When outstanding SG contributions are paid, employees will receive the SG shortfall amount plus the nominal interest from the start of the relevant period to the date the SGC is payable. Employees will also receive GIC that accrues on the SG shortfall amount.
It is important employees are aware of any SG payments you make to them through the Amnesty. Where an employee exceeds the contributions cap because of these contributions, the Commissioner can exercise discretion to disregard the contributions made under the Amnesty however if the SGC is paid directly to the employees’ Superfund, the employee will need to inform us of the payment by applying for the Commissioner’s discretion. If the SGC is paid to the ATO, the employee will not need to apply for the Commissioner’s discretion.
Contributions made under the Amnesty will not count towards your employees' income or contributions for Division 293 purposes.
What happens if the legislation is not enacted?
If the law never passes, the existing law and established guidelines will be applied. This means:
any contributions and payments made under the Amnesty will not be tax-deductible;
any self-assessments that anticipated the new law will need to be amended to include the administration component, and you will be required to pay the administration component;
Part 7 penalties will be imposed and may be remitted in accordance with our existing remission policies.