I’ve heard mention lately of a “super guarantee amnesty” and that it’s an incentive to employers to fix any super guarantee problems. My business has quite a few staff and so we pay super guarantee. How do I know if I might have a super guarantee problem, and how would the amnesty help me?
The Superannuation Guarantee Amnesty is a proposed solution to the growing issue of superannuation underpayment by employers. It is intended to provide employers with a one-off, 12-month window to disclose, and promptly fix, any superannuation guarantee mistakes without the risk of a penalty being imposed.
When a super guarantee is either underpaid or paid late, it must be disclosed to the ATO. In any situation where employers have not met their superannuation payment requirements to employees, they are liable to pay the underpaid or non-paid superannuation, plus interest, as well as administration fees and in some cases, a financial penalty, all of which are not tax deductible.
This is where the superannuation amnesty is likely to be a really valuable tool for business owners. Under the Amnesty, employers who voluntarily inform the ATO of previously undeclared underpayment of the super guarantee will not be liable for the administration charge or penalties. Businesses may also be able to claim a tax deduction for “catch-up payments”.
The Amnesty legislation has yet to pass through parliament and is therefore not yet available.
Superannuation commitments can be one of the most complex areas of financial compliance, especially if you have a high number of employees or high staff turnover.
The Amnesty is a proposed solution to superannuation underpayment by employers
If you have concerns or questions about your superannuation obligations, or to better understand if you would be eligible to take advantage of the proposed Amnesty, you should contact your accountant or tax advisor.
If you would like more information on this topic or have another tax question e-mail me at firstname.lastname@example.org.
Any information in this article has been prepared without taking into account your personal circumstances. You should seek professional advice before acting on any material. Crowe Horwath (Aust) Pty Ltd ABN 84 006 466 351, accepts no liability whatsoever for reliance on it.