Superannuation Guarantee (SG) Amnesty is still pending
The one-off 12 months opportunity to self-correct past non-compliance of superannuation guarantee (SG) amnesty is still not law till to date. Recapping the details of the proposal, the SG amnesty is to take effect from 24 May 2018 to 23 May 2019.
The amnesty applies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018. The advantage that comes for employers to come clean voluntarily during the amnesty before the commencement of an ATO audit will:
- not be liable for the administration component and penalties that may otherwise apply to late SG payments, and
- be able to claim back a deduction for catch-up payments made during the relevant 12-month period
Although the penalties are waived, employers are still required to pay all employees entitlements, including any unpaid SG amounts owed to employees and nominal interest, as well as any associated general interest charge.
Employers who are not up-to-date with their SG payment obligations and who do not come forward during amnesty period may face higher penalties in the future as stated by ATO in notice.
It is important to note that while SG amnesty is actively promoted by ATO, the proposed concessions are not guaranteed until the legislation becomes law.
For more information on superannuation guarantee amnesty to check your eligibility or simply a need to know more about SG, please feel free to contact us at Verus Accountants and Advisors. Our experts in SG department will guide you with an affordable fee in setting up the best system which fits your business needs in superannuation guarantee management.