May 2020 2 Minutes

Superannuation Guarantee Amnesty Bill finally passes into law

The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 received Royal Assent on 6 March 2020.

The Super Guarantee Amnesty provides a once-off opportunity for employers to self-correct historical SG non-compliance dating from 1 July 1992 to 31 March 2018. Quarters post-March 2018 are not eligible for the amnesty.

The amnesty allows employers to claim tax deductions for payments of SG charge or contributions made during the amnesty period to offset SG charge, as well as remove the administrative component and the Part 7 penalty that may otherwise apply in relation to SG non-compliance.

The amnesty period will start from 24 May 2018 and ends on 6 September 2020.

One of the amendments to this bill also limit the Commissioner’s ability to remit penalties for historical SG non-compliance, where an employer fails to disclose information relevant to their historical SG shortfall. This is intended to strengthen the operation of the amnesty through legislated minimum penalties on employers who fail to come forward.

It is therefore important that all employers who believe they may have historically either paid superannuation late or missed payments for employees during the periods covered by the amnesty to revisit their records and lodge the appropriate SG charge statements during the amnesty period.

Failure to do so will see full penalties applied, which in many cases when combined with interest charges end up being more than the outstanding Superannuation Guarantee liability. Employers who have made payments late without lodging the appropriate SGC Charge statements should also lodge statements those during the Amnesty period as late payment without completing the statements are effectively treated as unpaid until the statements have been lodged.

If you have any questions in relation to the SGC amnesty, please contact Iggy Moro.