The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 has now been passed.  This allows non-complying employers to self-correct any unpaid superannuation guarantee (SG) under a one-off SG Amnesty (the Amnesty).

Currently if your employees complying superannuation fund has not received the Superannuation Guarantee (SG) contributions on or before the due date then this payment will not be considered as being received by the superannuation fund and you will be liable for Super Guarantee Charge (SGC).

The SGC is made up of:


SG shortfall amounts, calculated on your employee’s salary or wages;

interest on those amounts, currently charged at 10%;
and
 an administration fee of $20 per employee, per quarter.


The employer is also liable for:


a Part 7 penalty for failing to lodge an SG statement, equal to double the amount of the SGC, i.e. 200 per cent of the SGC payable (the penalty may be partially remitted) — s.59 of the SGA Act; and
the general interest charge (GIC) on the unpaid amount.

In addition any amounts payable are non-deductible including the Part 7 penalty.

Benefits of  the one-off Amnesty for eligible employers:

Provides a one-off amnesty to allow employers to claim tax deductions for payments of SG charge or contributions made during the amnesty period to offset SG charge, as well as reducing penalties and fees that may otherwise apply in relation to historical SG non-compliance to nil

SG shortfall will not include the administrative  fee

The penalties under Part 7 is reduced by the extent to which the employer qualifies for the amnesty for the quarter

To be eligible for the Amnesty, an employer must:



voluntarily disclose SG shortfall amounts, relating to any period from 1 July 1992 to 31 March 2018, within the Amnesty period (24 May 2018 to six months after the day the Bill receives Royal Assent);

disclose SG shortfall amounts that have not previously been disclosed;

make the payment of the SG shortfall amount during the Amnesty period; and
not have been previously informed that the ATO is examining (or that it intends to examine) the employer’s SG compliance for the relevant quarter.