Employers have until 7 September 2020 to self-correct any historical underpayments of super guarantee amounts dating back to 1992 – without penalty.
The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 has been enacted.
The amnesty period allows 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.
Not sure if you have shortfalls?
Now is the time to do a review and double-check.
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 your accounting services director or manager on 03 9820 6400.
See our earlier post Have you had a superannuation shortfall?