There’s good news for those employers who have fallen behind in paying their superannuation guarantee obligations.
The Minister for Revenue and Financial Services announced a commencement of a 12 month Superannuation Guarantee Amnesty (subject to new law).
This is a one-off opportunity for employers to correct past super guarantee non-compliance without facing penalty.
The Amnesty will be available until 23 May 2019.
The Amnesty applies to previously undeclared Superannuation Guarantee shortfalls for any period from 1 July 1992 up to 31 March 2018.
It does not apply to the period starting on 1 April 2018 or subsequent periods.
This is how it works and how you will benefit:
Any employer who voluntarily discloses their previously undeclared Superannuation Guarantee (SG) shortfalls during the Amnesty and before the commencement of an audit of their SG will:
- Not be liable for the administration component (charge of $20 per employee per quarter) and penalties that may otherwise apply to late SG payments (maximum penalty is 200%), and
- Be able to claim a tax deduction for catch-up payments made in the 12 month period (normally not tax deductible).
Any employer who is not up-to-date with their superannuation guarantee payment obligations to their employees and who doesn’t come forward during this Amnesty may be subject to higher penalties in the future – generally, a minimum of 50% on top of the SG charged owed.
So, here’s what you need to do:
Check that you have correctly and on time paid Superannuation Guarantee for all your employees.
If not, complete the form and make the catch-up payments.
If you are unable to pay upfront, a payment plan may be organised to make it easier on your cash flow.
It is essential you use the correct form when applying for the amnesty so if you need assistance please contact our office on 02 6588 444 or via our contact form.