In 2018, the Federal Government tried to introduce a one off superannuation guarantee amnesty for employers to voluntarily bring their superannuation obligations up to date and pay all overdue employee superannuation. The measure was never enacted due to lack of bipartisan support. The Morrison Coalition Government has reintroduced the legislation to Parliament in September 2019 and if passed, giving employers another opportunity to come forward and bring their superannuation obligations up to date.
Unpaid superannuation remains a key area of focus for the Government and the ATO. The implementation of Single Touch Payroll, increased data sharing and data matching has made it easier for the ATO to identify employers with unpaid superannuation obligations.
The superannuation guarantee amnesty will apply for 12 months from 24 May 2018 to 6 months after the legislation receives Royal Assent.
Employers are eligible for the amnesty if:
– The unpaid superannuation was accrued during the periods from 1 July 1992 to 31 March 2018.
– The employer was not previously subject to an audit on those periods.
– The employer discloses and pays all unpaid superannuation amounts (together with the nominal interest charges) using the required ATO forms.
Employers who take advantage of the amnesty and voluntarily disclose and bring their superannuation obligations up to date will be able to:
– Avoid liability for a range of administration, interest, director penalties etc that would normally be imposed. The ATO will waive these penalties.
– Payments will be tax deductible for the employer (late superannuation payments are not deductible to the employer usually).
If employers do not take advantage of the amnesty period and make voluntary disclosure, the ATO will impose even harsher penalties.
The bill has been introduced to Parliament and has not yet been passed. We will keep you updated. Watch this space!
Please contact us to find out more. The team at EMspire Advisory are experienced accountants in Sydney and would like to help you create, grow and succeed in business.
Please note that this information is not specific and is general in nature and cannot be relied upon as advice. Please contact us for specific advice for you and your circumstances.