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A. What to consider as an employer

Superannuation guarantee amnesty

Section: 1.6

The government's superannuation guarantee amnesty bill was waved through the Senate on 6 March 2020, almost two full years after it was first introduced to the parliament.  The super guarantee amnesty ended on 7 September 2020. Employers who didn't apply for the super guarantee amnesty and have any unpaid or late paid super to disclose, they will need to lodge a 'Superannuation guarantee charge statement and pay the super guarantee charge (SGC).

The bill incentivises employers with a history of superannuation underpayment to "come forward and do the right thing by their employees" by paying any unpaid super in full, without being subject to the normal range of penalties for super underpayment.

Employers found to be underpaying their worker's superannuation will be subject to a minimum penalty of 100% of the SG shortfall they owe - and up to 200% in serious cases - if they fail to get their house in order before the amnesty period ends.

The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employee, for quarter(s) starting from 1 July 1992 to 31 March 2018.

In addition, payments of SGC made to the ATO after 24 May 2018 and before 11.59pm on 7 September 2020 will be tax deductible.

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Monday, October 26, 2020