Superannuation Guarantee Amnesty for Employers

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Jun 15, 2018 | Posted in Business Advice, Superannuation, Tax
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The government recently announced a twelve month amnesty period for employers to catch up with their superannuation guarantee obligations. The period will run from the date of the announcement - 24 May 2018 - to 23 May 2019.

The measures are subject to the bill - Treasury Laws Amendment (Superannuation 2018 Measures) Bill 2018 - being passed by parliament; there has been no indication the bill is contentious and we expect it to pass.

To be eligible, employers must:

  • pay all that is owing including the nominal interest within the period and;
  • voluntarily advise the ATO of the shortfall (not already be the subject of a Super Guarantee audit).

The benefits are:

  • the payment is tax deductible and;
  • the usual administration charge of $20 per employee will be waived.
  • penalties and fees for non-compliance are not charged.

Employers who do not take advantage of the amnesty will face higher penalties when they are subsequently caught – typically, at least 50% on top of the amount owing.

To take advantage of the amnesty period, employers should:

  • pay the required amount to the employee’s nominated superannuation fund or ATO (GIC may apply if you pay to the ATO) and
  • complete and lodge the Superannuation Guarantee Amnesty Fund payment form with the ATO (via Business Portal).

The amnesty covers superannuation guarantee liabilities for the period 1 July 1992 to 31 March 2018.

The ATO website has been updated with the approved forms for access to the amnesty, which can be accessed by the link below.

https://www.ato.gov.au/Business/Super-for-employers/Superannuation-Guarantee-Amnesty/

A final note; if the legislation does not pass then the current legislation applies so payments will not be deductible and penalties will be applied by the ATO.

As we always advise, if your business has any questions regarding this new law or would like to make use of it please get in contact with your Ulton Advisor.

Sources:

https://www.ato.gov.au/Business/Super-for-employers/Superannuation-Guarantee-Amnesty/

https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6126

both accessed 8th June 2018

DarylCorpe
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