Tax Tips: Superannuation Guarantee Amnesty
The Government has sought to take action against employers who have failed in their obligations to pay their employees superannuation.For some years now it has been a major focus of the ATO and the government. They have announced an amnesty for employers and this bill has taken effect. The Super Guarantee amnesty legislation, has passed all stages without amendment and awaits Royal Assent, having been passed by the Senate on 24 February 2020.
The Bill establishes the Government’s Super Guarantee (SG) amnesty which started on 24 May 2018 (the date it was originally announced) and will run until 6 months after the day the Bill receives assent. The amnesty will apply to SG shortfalls as far back as 1 July 1992, and up until the quarter starting on 1 January 2018 (inclusive). It does not apply to shortfalls for quarters starting from 1 April 2018.
Under the amnesty, employers can self-correct SG underpayments without incurring additional penalties that would normally apply. Importantly, employers can claim a tax deduction for payments of SG charge or contributions made during the amnesty period (the SG charge is otherwise non-deductible). Thomson Reuters Weekly Tax Bulletin 08/2020