Proposed Superannuation Guarantee Amnesty

By Lexi Goulden 5 months ago

You should be aware that under the current law, if you’ve missed a payment or haven’t paid an employees’ super on time, you are required to lodge an SG charge statement.

Until law giving effect to the proposed Superannuation Guarantee Amnesty is enacted, we will continue to apply the existing law, including the application of the mandatory administration component ($20 per employee per period) to SG charge statements lodged by employers.

New law required

As at 6 December 2018 Parliament has concluded for the year and the Amnesty bill has not been enacted. If passed into law, the proposed amnesty will be a one-off opportunity for employers to self-correct past super guarantee (SG) non-compliance without penalty.

The legislation to give effect to the proposed amnesty was introduced into Parliament on 24 May 2018.

Subject to the passage of legislation the proposed amnesty is intended to be available for 12 months from 24 May 2018 to 23 May 2019.

If enacted, we will apply the new law retrospectively to voluntary disclosures made from during this period. You will be entitled to the benefits of the amnesty for any SG shortfalls you’ve voluntarily disclosed to us – subject to the eligibility criteria.

Who will be eligible for the proposed Amnesty?

To be eligible for the proposed amnesty you will need to have:

  • voluntarily disclosed amounts of SG shortfall or late payments that have not been previously disclosed for any period from 1 July 1992 up to 31 March 2018
  • made the voluntary disclosure within the proposed 12-month amnesty period (between 24 May 2018 and 23 May 2019)
  • not be subject to an audit of your SG for the relevant periods.

Periods from 1 April 2018 won’t be eligible for the benefits of the proposed amnesty.

What if my SG is audited?

You won’t be eligible for the benefits of the proposed amnesty for any periods that are currently subject to an audit of your SG.

An audit of your SG can be initiated at any time by the ATO. We may also audit your SG in response to employees who advise they haven’t received their SG.

What are the benefits of the proposed amnesty if the law is enacted?

If the proposed amnesty legislation is enacted, the benefits will be applied retrospectively – subject to the eligibility criteria.

Benefits will include:

  • the administration component ($20 per employee per period) of the super guarantee charge (SGC) won’t be payable
  • Part 7 penalty will not be applied
  • all catch-up payments made during the 12-month amnesty period will become tax-deductible.

Employers who do not disclose their SG shortfalls during the Amnesty period may face harsher penalties if they are audited in the future.

How can I access the proposed amnesty?

If you’ve missed a payment or haven’t paid an employee’s super on time, you should lodge an SG charge statement and pay the amount owing to us.

We will apply the current law to this statement however, if legislation is enacted, we will apply the benefits of the proposed amnesty retrospectively.

When do I need to pay the amount owed?

Payment is essential for you to be eligible for the benefits of the proposed amnesty.

To reduce the GIC you would otherwise have to pay, you should start payment as soon as possible.

To make a payment, you will need to know your payment reference number (PRN).

If you can’t pay in full you should set up a payment plan with the ATO to pay the amount owing over an agreed period.

If you need to revise your ATO payment plan, or set up a new one, you should do this as soon as possible to avoid losing the benefits of the proposed amnesty.

SOURCE ATO: QC 55626

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