On 6 March 2020 the government introduced a superannuation guarantee (SG) amnesty (the amnesty). The superannuation guarantee (SG) amnesty provides employers with a one-off opportunity to “self-correct” to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, that they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018, without incurring the administration component ($20 per employee per quarter) or Part 7 penalty. Now is the time to ensure that your payroll is correct and there are no hidden SG issues looming.
The amnesty applies from 24 May 2018 (the date of the original announcement) until before 11:59pm 7 September 2020. Employers will have this period to voluntarily disclose underpaid or unpaid SG payment to the Commissioner of Taxation and payments made during this period will be tax deductible.
The amnesty applies to historical underpaid or unpaid SG for any period up to the March 2018 quarter.
To qualify for the amnesty, employers must disclose the outstanding SG to the Tax Commissioner. You either pay the full amount owing, or if the business cannot pay the full amount, enter into a payment plan with the ATO. If you agree to a payment plan and do not meet the payments, the amnesty will no longer apply. The amnesty only applies to “voluntary” disclosures.