As you are probably aware, the Australian Taxation Office (ATO) has been following up with employers on unpaid or late super contributions. Businesses are being given the opportunity to come forward to avoid penalties that may have otherwise applied.
A bill has been reintroduced into parliament which, if passed, will give employers the opportunity to fix any past SG payment errors.
If the bill passes without amendments, the amnesty period will start from 24 May 2018 and end six months from the date it receives Royal Assent.
Employers can avoid penalties during the amnesty period
During the amnesty, businesses will be able to pay any unpaid super in full, including interest, and avoid late payment penalties.
The amnesty was originally announced in May 2018, but the legislation did not pass the last parliament. The government says that since the proposed amnesty was announced, more than 7,000 employers have come forward to voluntarily disclose historical unpaid super.
Current law
Under the existing law, if an employer has missed an SG payment or hasn’t paid an employee's super on time, they’re required to lodge an SG Charge (SGC) statement with the ATO and pay the SGC on any shortfall amounts. These payments are not tax deductible.
If you’re unsure of what action to take, you can contact the ATO on 13 10 20 or to ensure you’re paying the right amount of super to the right employees you can run a quick check of your super obligations.