The Government has introduced legislation to Parliament that will introduce a one-off, 12 month amnesty for historical underpayment of Superannuation Guarantee (SG) payments to employees. The intention of the Bill is to encourage employers to pay employees any unpaid superannuation in full.
Employers who take advantage of the amnesty will have to pay all that is owing to their employees and a high rate of nominal interest. However, penalties that normally apply to late SG payments will be waived.
Employers who do not use the amnesty will face higher penalties when they are subsequently caught; a minimum of 50% on top of the SG charge they owe. Whilst an amnesty period applies, the ATO will still continue its usual enforcement activities against employers who don’t own up to voluntarily.
The amnesty is now in place and will run for one year from 24 May 2018.