The Superannuation guarantee amnesty provides for a one-off amnesty to encourage employers to self‑correct historical SG non-compliance.
The amnesty will enable employers who unwittingly under-paid superannuation, to catch up those payments with the following concessions:
Removal of the $20 per employee per quarter administration charge
Making the payment of superannuation guarantee charge income tax-deductible
The Super Guarantee (SG) amnesty will run for six months after the day the Bill receives royal assent (the Bill has passed Parliament but has not yet received Royal Assent) and it will apply to SG shortfalls up until the quarter ending 31st March 2018.
The amnesty does not remove the need to pay 10% interest on the shortfall amounts, as this is not a penalty as such, but is designed to compensate the employee for lost earnings.
Importantly, employers who do not take advantage of the one-off amnesty will face significantly higher penalties when they are subsequently caught - typically employers will face a minimum 100 per cent penalty on top of the SG Charge they owe. The SG Charge includes the full amount of SG owed to employees, interest on the SG owed of 10 per cent, and an administration fee. In addition, throughout the amnesty period the ATO will still continue its usual enforcement activity against employers for historical obligations they do not own up to voluntarily.
What do you need to do?
If you have previously lodged a superannuation guarantee charge disclosure and been charged the administration fee, you should ask the ATO for a refund, noting that this may not be possible until the new law receives royal assent.
If you have superannuation shortfalls to declare, ensure this is done within the six month period after royal assent.
Please contact us if you have any queries
(Extracted from the Explanatory Memorandum and others)