Superannuation Guarantee (SG) amnesty

The proposed SG amnesty, which was to provide employers who had fallen behind on their employee superannuation obligations a one year period to ‘self-correct’, failed to clear Parliament before the end of the 2018 financial year.

The amnesty was to commence from 24 May 2018, but while the legislation remains pending, any unpaid SGC disclosures made to the ATO will be dealt with under the existing law. Not only will penalties apply to these disclosures, but the catch-up payment will not be deductible to the employer.

Once legislated, details of the proposed SGC amnesty are as follows:

  • Employers that have underpaid or not paid SG for any period from 1 July 1992 to 31 March 2018 may apply
  • Must be a voluntary disclosure
  • Does not apply to amounts already identified as owing or where the employer is the subject of an ATO audit
  • Qualifying employers will pay the unpaid SG entitlements, interest of 10% per year, no administration fees, no penalties and a general interest charge
  • Special provisions will protect employees from inadvertently breaching concessional contribution cap limits

Regardless of whether you believe your business has a SG underpayment issue, it may be worthwhile undertaking a payroll audit to ensure your payroll calculations are correct, your employees are being paid at the correct rate under workplace laws and awards and to confirm whether your contractors are classified as employees under the SG provisions and as a result are entitled to SG.

About $2.85 billion is currently owed in missing and late SG payments.

 

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