The proposed amnesty allowing employers to self-correct superannuation guarantee (SG) non-compliance has been reactivated.
What does this mean for employers?
If the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 (the Amnesty Bill) is passed by the Parliament, employers will be given a one-off amnesty, with reduced penalties and fees, to disclose historical SG non-compliance and pay any SG charge imposed in relation to the disclosed SG shortfall.
The amnesty allows employers who qualify for the amnesty to claim tax deductions for payments of SG charge and contributions made to offset any SG charge made during the amnesty period.
The amnesty period starts on 24 May 2018 and ends 6 months after the day the Amnesty Bill becomes law. This is a longer period than the original 12-month amnesty.
Tip! If you are concerned that you may have SG corrections to make, please speak with your tax adviser. ■
Ref: TaxWise Business November 2019