The previously proposed Superannuation Guarantee (SG) Amnesty has been re-introduced into Parliament.
Under the proposal, an employer will qualify if they disclose to the Australian Taxation Office (ATO) information which relates to their SG shortfall from 1 July 1992 – 1 January 2018, which was not previously disclosed.
An employer has until 6 months after the bill receives Royal Assent to make disclosure to the ATO.
Employers who are already being reviewed by the ATO for SG shortfall will be excluded from the amnesty.
Eligible employers who make an SG shortfall payment in full, as a result of the proposed amnesty, will not be liable for the administrative penalty of $20 per employee per quarter nor the SG shortfall penalty of 100%. Interest will still be payable on the SG shortfall at 10%.
An added incentive for employers to disclose and make the shortfall payment during the amnesty period is there will be a tax deduction for the payments of SG and SG charge.
Employers who do not rectify their SG shortfall will be levied a penalty of 100% of the amount of SG charge payable, where the employer did not disclose the shortfall as part of the amnesty.
No excess contributions tax nor any Division 293 tax will be levied on an employee who receives additional contributions as part of the amnesty.
It should be noted the amnesty is only a proposal and until enacted the current law will continue to apply.
If you would like to discuss this or any other superannuation matter further, please contact Daniel Shaw, Superannuation Principal on 03 9098 4299.