The government has announced the commencement of a 12-month Superannuation Guarantee Amnesty (the Amnesty). The legislation is yet to be passed, however details of the proposed Amnesty are below.

Employers who voluntarily disclose previously undeclared superannuation guarantee shortfalls during the Amnesty period will:

  • not be liable for the administration component and penalties that would otherwise apply to late superannuation guarantee payments; and,
  • be able to claim a tax deduction for the superannuation guarantee (catch up) payments made during the Amnesty period.

To be eligible for the Amnesty, you must also not be subject to an audit of your superannuation guarantee obligations for the relevant period.

Employers would still be required to pay all employee entitlements, which includes unpaid superannuation guarantee amounts, nominal interest, as well as any associated general interest charge (GIC). Employers who are not up-to-date with their superannuation guarantee payment obligations, and don't come forward during the Amnesty, are likely to face higher penalties in the future.

The Amnesty applies to previously undeclared superannuation guarantee shortfalls in the period from 1 July 1992 up to 31 March 2018.

Subject to the legislation being passed, the Amnesty will be available from 24 May 2018 to 23 May 2019.

Please call your WCH accountant for more information.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.