Superannuation Guarantee Amnesty
On 24 May 2018, Minister for Revenue and Financial Services announced the commencement of a 12-month Superannuation Guarantee Amnesty (the Amnesty).
The Amnesty is a one-off opportunity for employers to self-correct past super guarantee (SG) non-compliance without penalty.
Subject to the passage of legislation, the Amnesty will be available from 24 May 2018 to 23 May 2019.
Employers who voluntarily disclose previously undeclared SG shortfalls during the Amnesty and before the commencement of an audit of their SG 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 12-month period
Employers will still be required to pay all employee entitlements. This includes the unpaid SG amounts owed to employees and the nominal interest, as well as any associated general interest charge (GIC).
The Amnesty applies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018.
The Amnesty does not apply to the period starting on 1 April 2018 or subsequent periods.
Employers who are not up-to-date with their SG payment obligations to their employees and who don’t come forward during the Amnesty may face higher penalties in the future.
Accessing the Amnesty is a simple process. If you are able to pay the full SG shortfall amount directly to your employees’ super fund or (funds), then complete a payment form and submit it to us electronically through the business portal.
If you are unable to pay the full SG shortfall amount directly to your employees’ super fund or (funds), then complete and lodge a payment form and we will contact you to arrange a payment plan. If you chose to, you can start payment before we contact you. This will reduce the GIC you would otherwise have to pay.
Eligibility for the Amnesty
To be eligible for the Amnesty you must:
- voluntarily disclose amounts of SG shortfall within the 12-month Amnesty period – between 24 May 2018 and 23 May 2019,
- disclose amounts of SG shortfall that have not previously been disclosed, and
- not be subject to an audit of your SG for the relevant periods
If you have already been assessed for a period, you can amend a previously disclosed SG shortfall, but only newly-disclosed amounts are eligible.