Sladen Snippet – the super guarantee amnesty is back – maybe?

The government’s previously announced amnesty for unpaid superannuation guarantee payments, which lapsed with the calling of the previous election, has been reintroduced into parliament in the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019.

If the bill passes (as currently drafted), employers will receive a one off amnesty to claim tax deductions for payment of super guarantee charge and penalties and fees will be reduced to nil for historical super guarantee non-compliance.

The amnesty period is proposed to start from 24 May 2018 and end 6 months after the Act receives Royal Assent. The amnesty only applies to non-payment of super guarantee prior 1 January 2018 and won’t apply if the ATO has already commenced an examination of an employer for non-compliance of super guarantee.

In addition to the above mentioned “carrot”, there is also a “stick” in that, from the day the amnesty ends, the ATO’s ability to remit super guarantee penalties below 100% of the super guarantee charge will be severely restricted (ie unless the employer makes a voluntary disclosure or there are exceptional circumstances). This means that employers detected with super guarantee breaches will be hit with the non-deductible super guarantee charge and at least an equivalent amount in penalties.

To discuss further or for more information please contact:

Phil Broderick
T +61 3 9611 0163  l M +61 419 512 801   

Melissa Colaluca
Senior Associate
T +61 3 9611 0161