Employers that have fallen behind on their Superannuation Guarantee (SG) obligations will have 12 months to ‘self-correct’ under the new Superannuation Guarantee Amnesty (the Amnesty).
Running from 24 May 2018 to 23 May 2019, the Amnesty encourages employers to reduce any SG gap by providing relief from the penalties that normally apply to late payments.
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 fees and penalties that may otherwise apply to late SG payments, and
- be able to claim a deduction for catch-up payments made during the 12-month amnesty.
Employers will still be required to pay all employee entitlements. This includes:
- any unpaid SG amounts owed to employees; and
- the nominal interest; and
- any associated general interest charge (GIC).
The amnesty applies to employers that have underpaid or not paid SG 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 are not up-to-date with their SG payment obligations to their employees and who don't come forward during the Amnesty may face higher penalties in the future.
Accessing the Amnesty is a simple process:
- If you can pay the amount owing in full to an employee super fund (or funds) you should use the SG Amnesty fund payment form
- If you cannot pay the amount owing in full you should use the SG Amnesty ATO payment form. The ATO will contact you to arrange a payment plan.
QIEC Super is here to help
Legislation enabling the Amnesty is currently before Parliament. Further information on the proposed legislation is available here. QIEC Super will keep you informed if and when this proposed change is legislated.
If you have any questions or would like to discuss how the above measure impacts you, please contact QIEC Super on 1300 360 507 or firstname.lastname@example.org.