Have you had a superannuation guarantee shortfall?
Amnesty may apply
This week, the Economics Legislation Committee recommended the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 be passed as law. The bill entails a one-off superannuation guarantee amnesty, allowing non-complying employers to self-correct any unpaid superannuation guarantee amounts dating back to 1992 without penalty for up to 6 months after the day the Bill is enacted.
The amnesty period will also allow for:
- Removal of the $20 per employee per quarter administration charge
- Removal the imposition of General Interest Charge (GIC)
- Make the payment of superannuation guarantee charge (SGC) income tax-deductible.
Employers remain obliged to compensate the employee on lost earnings resulting from underpayments. The interest rate is 10% on the shortfall amounts.
What to do if you have shortfalls to declare
You should declare these as soon as possible regardless of having a start date for the amnesty period. For now, you may be able to use the late payment offset to reduce the amount of SGC you must pay or carry the late payment forward as a pre-payment of a future super contribution for the same employee.
If you have already declared shortfalls
You may be able to ask the ATO for a refund on the administration charge and the GIC.
We’re ready to help. Contact our team 03 9820 6400.