The once-off, 12 month amnesty will set aside employer penalties for late payment of SG that are normally owed to the ATO, with employers only needing to pay all SG that is owed to their employees, including the rate of nominal interest.
The Superannuation Guarantee Amnesty was originally announced in May 2018 to apply from 24 May 2018 until 23 May 2019, but the legislation to establish the amnesty did not pass the last parliament.
The ATO has been greater powers to ensure employers meet their obligations, and to help ensure employees receive their superannuation entitlements. The Government’s legislated package of integrity measures – part of the Treasury Laws Amendment (2018 Measures No. 4) Act 2019 – includes up to 12 months jail for employers who continue to do the wrong thing by their workers, and gives the ATO near real-time visibility of how much SG employees are owed and the contributions they actually receive.
Employers who owe SG for prior periods and who do not take advantage of this amnesty will face higher charges, including a minimum 50% penalty on top of the SG Charge they already owe. Employers who owe SG for prior periods should strongly consider taking advantage of this one-off Superannuation Guarantee Amnesty to get their affairs in order or otherwise face harsh penalties.
Employers should also remember that if you don’t pay your employee’s superannuation by the end of a tax year you won’t get a deduction in that year. If you don’t remit super by the 28th July, then you don’t get a tax deduction at all. The super remain payable, but the deduction is lost.
If you’d like to find out more about the Amnesty and how you now disclose past failing, the contact Noel or Amanda on 03 9585 7555 oremail us