After being in limbo for a number of years, the bill to introduce the super guarantee amnesty has now passed both houses of parliament and awaits Royal Assent. Whilst this is good news for employers and employees, as noted in our previous snippet, there is a sting in the tail.

Under the amnesty, employers who voluntarily disclose and pay non-payments or under payments of superannuation contributions for the period from 1 July 1992 to 31 March 2018 will receive the following concessions:

They can claim a deduction in relation to the super guarantee charge;
They do not have to pay the administrative component of the super guarantee charge; and
They are not liable for penalties for failure to lodge super guarantee statements.

The amnesty period covers disclosures from 24 May 2018 to 6 months after the Act receives Royal Assent (expected to be late August 2020).

The amnesty will not apply if the disclosure was made after the Australian Taxation Office (ATO) has informed the employer that they are examining, or intend to examine, the employer’s compliance with the super guarantee laws.

For employers who fail to take up the amnesty, who are subsequently found to have triggered the super guarantee charge during the amnesty period, the ATO generally will be prevented from remitting the penalties relating to the super guarantee charge to below 100%. This means affected employers will pay a non-deductible amount equal to at least 200% of the super guarantee charge.

It is therefore critical for employers to review whether they complied with their historical super guarantee obligations and, if not, make a voluntary disclosure to the ATO before the end of the amnesty period.

To discuss further or for more information please contact:

Phil Broderick
Principal
T +61 3 9611 0163 l M +61 419 512 801
E: pbroderick@sladen.com.au

Melissa Colaluca
Senior Associate
T +61 3 9611 0161
E: mcolaluca@sladen.com.au