On 24 May 2018, the Minister for Revenue and Financial Services has announced a one-off amnesty period for employers to self-correct past super guarantee (SG) shortfalls.
The amnesty period, subject to the passage of legislation which was introduced into Parliament on 24 May 2018, will be available from 24 May 2018 to 23 May 2019 and will apply to SG shortfalls during any period from 1 July 1992 up to 31 March 2018. The amnesty does not apply to the period starting 1 April 2018.
Voluntary disclosure of previously undeclared SG shortfalls made prior to any Australian Taxation Office (ATO) investigations will:
- Not be liable for the additional administration charges associated with late payment
- Be tax deductible if paid during the 12-month amnesty period (and if you enter into a payment plan, it is only amounts paid in the amnesty period that will be deductible)
- Not be liable for penalties of up to 200%
When outstanding SG contributions are paid, employers must advise affected employees. Those employees will receive the SG shortfall amount plus nominal interest from the start of the relevant period to the date the SGC is payable. Employees will also receive the general interest charge (GIC) that accrues on the SG shortfall amounts.
Periods previously subject to an ATO SG investigation will not be eligible for relief under the amnesty rules. However, the ATO recommends all employers to voluntarily disclose undeclared SG shortfalls during the amnesty period. Employers who fail to voluntarily disclose undeclared SG shortfalls during the amnesty period may be liable for higher penalties in the future.
If you are aware of SG shortfalls in your business, there are processes to follow.
If you’re not up to date with your superannuation obligations, please contact your HLB Mann Judd advisor immediately for further guidance on how to access the proposed SG amnesty relief.