The government has introduced a superannuation guarantee amnesty. The amnesty allows employers to disclose and pay previously unpaid super guarantee charge, including nominal interest, that they owe their employees, for quarters starting from 1 July 1992 to 31 March 2018, without incurring the administration component ($20 per employee per quarter) or Part 7 penalty.
In addition, payments of SGC made to the ATO after 24 May 2018 and by 7 September 2020 will be tax deductible.
Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again. Employers who come forward from 6 March 2020 need to apply for the amnesty.
The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG. If these employers are identified before they come forward, they will not be eligible for the benefits of the amnesty, and will be required to pay the administration component and Part 7 penalties (up to 200% of the SGC), in addition to the SG shortfall and interest. In addition, payments of the SGC won’t be tax deductible.
To view further details on the ATO website, click here.