Current as of June 2018
If you’ve fallen behind in making superannuation contributions for your employees, help may be on the way.
On 24 May, the government announced a one-off, twelve month amnesty for historical underpayment of superannuation guarantee without penalty. Once the legislation is passed, employers will have until 23 May 2019 to voluntarily disclose outstanding superannuation guarantee shortfalls.
To access the amnesty, you should use either:
- Complete and lodge the SG Amnesty Fund Payment form with the ATO, and pay the amounts owing directly to your employee’s superannuation funds.
- If you need a payment plan, you should complete and lodge the SG Amnesty ATO Payment form with the ATO. After you’ve lodged this form, the ATO will contact you to arrange a payment plan. Remember, for your contributions to be tax deductible, all payments under the plan must be made by 23 May 2019.
The amnesty will generally apply to all late payment of superannuation from 1992 through to March 2018 (ie any contributions that had a due date before 28 April 2018). While penalties won’t apply, nominal interest must be paid to the employee’s superannuation fund. Payments made under the amnesty before 23 May 2019 will be tax deductible.
Until the legislation is enacted, the existing law applies. This means that if you take advantage of the amnesty before it becomes law and it ultimately does not come into effect, any contributions you have made will not be tax deductible, and you will need to amend your self-assessments to include administrative penalties.
While in many cases it might be appropriate to wait until after the legislation has passed to self-assess under the amnesty, it is important to note that you are not eligible for the amnesty for any periods that are subject to a superannuation guarantee audit. In other words, if an audit of your superannuation guarantee obligations starts while you are waiting for the amnesty legislation to pass, you will not be eligible for the amnesty.
If you make late payments for periods from the June 2018 quarter, the ATO will enforce all penalties, and the late contributions will not be tax deductible. You should therefore ensure that you make all future superannuation contributions on time (ie by 28th day of the month following the end of each quarter).
This newsletter has been produced by Stanley & Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under Professional Standards legislation.