The long awaited SG amnesty bill has today passed through parliament and is now just waiting for royal assent. The government anticipate that this will result in at least $160 million of super being paid to employees who would have otherwise missed out.

Current Laws

Under the current laws where an employer has missed a payment or have paid an employee's superannuation obligation late the employer is required to prepare and lodge SGC statements to the ATO.

Employers are also required to pay the super guarantee charge on any shortfall amounts, this includes a mandatory administration component of $20 per employee per quarter as well as annualised interest of 10%.

Any super which is used to reduce a super guarantee liability is non-deductible, which generally means that most super paid late in non-deductible and can have a significant impact on an employer's Tax position.

New Laws

Under the new amnesty measures employers who voluntarily disclose 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 Amnesty period.

Employers will still be required to pay all employee entitlements, including:

  • The unpaid SG amounts owed to employees;
  • The nominal interest; and
  • Any associated general interest charges.

Who is eligible?

To be eligible for the Amnesty, an employer must:

  • Voluntarily disclose the SG shortfall amounts which relate to any period from 1 July 1992 to 31 March 2018;
  • The amounts must be disclosed within the amnesty period (24 May 2018 to six months after the day the Bill receives Royal Assent);
  • Disclose SG shortfall amounts that have not previously been disclosed;
  • Make the payment of the SG shortfall amounts during the amnesty period; and
  • Not have been previously informed that the ATO is examining, or intends to examine, the employer's SG compliance for the relevant quarter.

How can we help?

If you require any assistance understanding your super guarantee obligations or whether the above changes impact you please contact our team on08 9426 0666.