Employers should take advantage of the Amnesty to put their superannuation guarantee affairs in order.
The Superannuation Guarantee Amnesty is a government proposal to give employers a ‘one-off’ opportunity to rectify any past super guarantee (SG) shortfalls without being subjected to the usual penalties.
The Amnesty will provide an opportunity for employers to self-report and correct previous undeclared SG shortfalls, which occurred between 1 July 1992 and 31 March 2018.
To be eligible for the Amnesty, employers must:
- voluntarily disclose their SG shortfall amount, including nominal interest, to the ATO during the Amnesty period;
- disclose amounts of SG shortfall that have not been previously disclosed; and
- not be subject to an audit of their SG compliance during the relevant period.
Accessing the Amnesty is a simple process. Once the amount payable is calculated, in order to make a payment, there are two options:
- where an employer can make full payment of the shortfall and nominal interest, they are to do so directly to the affected employee's super fund and complete and lodge the Amnesty Fund payment form; or
- where an employer cannot make full payment, they are required complete and lodge the Amnesty ATO payment form and enter into a payment plan with the ATO.
We recommend employers take advantage of the Amnesty to put their superannuation guarantee affairs in order.
Employers who are not up-to-date with their SG payment obligations to their employees and who do not come forward during the Amnesty may face higher penalties in the future.
Contact us for more information or if you would like us to review your superannuation practices to ensure that you have fulfilled your superannuation obligations in respect of current and former employees and, where required, contractors.