The Government has announced a one-off, 12 month superannuation guarantee amnesty for employers whose superannuation obligations have not been met or whose payments have been late; the relevant legislation has not yet been enacted but will be retrospective when it is.
The superannuation guarantee amnesty will be available during the period 24 May 2018 to 23 May 2019 for missed or late superannuation guarantee payments for employees and the amnesty will apply to any shortfall from 1 July 1992 when SGC was first introduced, to the quarter ended 31 March 2018!
This is a real opportunity for delinquent employers to wipe the slate clean, catch up with employee superannuation and receive a tax deduction not normally available for missed/late payments (provided the payments are made in the amnesty period).
The employer must, during the amnesty period, disclose any non, late or short payments of employee superannuation.
In addition to a tax deduction for any shortfall or late superannuation payments made during the amnesty period, the administration penalty of $20/employee/quarter will not be applied, nor will any Part 7 penalties, which could have been up to 200% of the SGC – i.e. the unpaid or late superannuation.
Assuming the legislation is enacted, delinquent employers must take advantage of this offer. The SGC landscape is changing and, with the ATO having more audit resources, single touch payroll being introduced, and new superannuation fund monthly reporting obligations, this will collectively stamp out the delinquent employers!