The proposed superannuation guarangee (‘SG’) amnesty is a one-off opportunity for employers to self-correct past SG non-compliance.
The ‘carrot’ currently on the table is that any eligible voluntary disclosures with respect to an SG shortfall can be made without penalty.
Subject to the passage of legislation currently before the Senate, the SG amnesty will be available from the 12-month period from 24 May 2018 to 23 May 2019.
The proposed SG amnesty appalies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018.
It will not apply to a period starting on 1 April 2018 or subsequent periods.
Employers who voluntarily disclose previously undeclared SG shortfalls during the SG amnesty (i.e., importantly before the commencement of an ATO audit) 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 during the relevant 12-month period.
This means that employers will still be required to pay all employee entitlements, including any unpaid SGT amounts owed to employees and the nominal interest, as well as any associated general interest charge (i.e., GIC).
Employers who are not up-to-date with their SG payment obligations to their employees and who don’t come forward durin the proposed SG amnesty have been put on notice by the ATO that they may face higher penalties in the future.
If you have any questions about the SG amnesty or would like some help from the friendly team at BSC Business Advisors, please click here to contact us or give the team a call on 3135 9420.