The Government’s Super Guarantee amnesty legislation, the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 received Royal Asset on 6 March 2020.
This new legislation establishes the Government’s Super Guarantee (SG) amnesty which runs from 24 May 2018 and ends on 6 September 2020 (being 6 months after the day the Bill received Royal Assent). However as that end date falls on a weekend, the ATO says employers have until 11:59PM on 7 September 2020 to disclose, lodge and pay under the amnesty.
To qualify for the amnesty, a disclosure must be made to the ATO in the approved form (and must not have been previously disclosed).
Under the amnesty, employers can self-correct SG underpayments without incurring late payment penalties that would normally apply. Employers must still pay all SG shortfall amounts owing to their employees, including the nominal interest and GIC (but not the $20 administrative component). Importantly, employers can claim a tax deduction for payments of SG charge or contributions made during the amnesty period (the SG charge is otherwise non-deductible).
If employers do not take advantage of the amnesty, they will face significantly higher penalties when they are caught – a minimum 100% penalty on top of the SG shortfall.
If you are an employer with underpaid SG who is considering making use of this amnesty, Roberts & Morrow can assist you with your disclosure to the ATO before the amnesty ends.
Update: Amnesty period closed on September 7, 2020