Superannuation Guarantee Amnesty – Clarification
The ATO have confirmed that the Superannuation Guarantee Amnesty period has not been passed into legislation and is therefore not in effect. Parliament is scheduled to return on 10 September 2018, but it is unsure when this specific legislation will be put in front of the Government.
On 24 May 2018, the Government announced the proposal of a 12-month Superannuation Guarantee Amnesty period. The Amnesty is a one-off opportunity for employers to self-correct past super guarantee non-compliance without penalty.
Under the Amnesty, employers can voluntarily disclose to the ATO previously undeclared Super guarantee shortfalls relating to periods from 1 July 1992 to 31 March 2018 and make payments to satisfy the shortfalls, whilst still gaining an income tax deduction.
For more information regarding this amnesty period please contact us on 08-9754-4144.
Until the legislation is enacted, the ATO are required to apply the existing law. The administration component of the SG charge remains legally payable and deductions cannot be claimed. The ATO will not require payment of the administration component until the outcome of the legislation is known.
If the proposed law does not come into effect:
- any contributions and payments made under the Amnesty will not be tax-deductible
- any self-assessments that anticipated the new law will need to be amended to include the administration component, and you will be required to pay the administration component. Penalties will be imposed and may be remitted in accordance with the ATO’s existing remission policies.
You will not be able to receive a refund for payments you have made under the Amnesty if the law does not pass, as these amounts were always payable under the existing law.
We will provide an update on this matter once the outcome of the proposed legislation has been actioned by Parliament. Once enacted, it is intended to apply retrospectively.
