In May, a Superannuation Guarantee Amnesty was announced (subject to the passage of legislation). If you are an employer and you think you might be behind on your Superannuation Guarantee payments, read on to find out all about the proposed amnesty.
What are Superannuation Guarantee payments?
If you pay an employee $450 or more in a calendar month, you generally have to pay super guarantee on top of their wages. If you need more information about superannuation, check out our post about super here.
What is the Superannuation Guarantee Amnesty?
The Superannuation Guarantee Amnesty is a 12 month amnesty that will give employers who have unpaid Superannuation Guarantee payments the chance to avoid penalties from the ATO if they voluntarily admit to non-payment of the Superannuation Guarantee.
What will I have to pay if I voluntarily admit to non-payment?
The Amnesty will mean that employers will have to pay the unpaid Superannuation Guarantee payments plus interest. They will however avoid any further penalty from the ATO. Employers will also be able to claim a deduction for catch-up payments made in the 12 month period.
What will happen if I don’t voluntarily admit non-payment?
Employers with unpaid Superannuation Guarantee payments who do not come forward as part of the Amnesty will be liable for penalties from the ATO when the non-payment is discovered. In general this is a minimum 50% penalty on top of the Superannuation Guarantee payments that they owe.
What are the dates of the Superannuation Guarantee Amnesty?
The Superannuation Guarantee Amnesty is expected to be available from 24 May 2018 to 23 May 2019.
What period does the Superannuation Guarantee Amnesty apply to?
The amnesty applies to previously undeclared Superannuation Guarantee shortfalls for any period from 1 July 1992 to 31 March 2018. It does not apply to the period starting 1 April 2018 or subsequent periods.
How do I access the Amnesty?
If you are able to pay the full Superannuation Guarantee shortfall amount directly to your employees’ super fund, then complete a payment form and submit to the ATO electronically through the business portal.
If you are unable to pay the full Superannuation Guarantee shortfall directly to your employees’ super fund, then complete and lodge a payment form and the ATO will contact you to arrange a payment plan.
What should I do next?
The best thing for you to do as an employer right now is to review your super records so that you are fully aware of what you may owe. When the amnesty has passed into law, then you can make your next move if needed.