Super Guarantee Amnesty

Super Guarantee Amnesty

Super Guarantee Amnesty 

In Australia, employers are required to contribute a percentage of an employee’s earnings to a superannuation fund or retirement savings account, known as the super guarantee. Earlier this year, the Senate passed the Superannuation Amnesty Bill, presenting an opportunity for employers to bring their superannuation contributions for employees up to date, without incurring any penalties. This is known as the Super Guarantee (SG) Amnesty.

Under the Bill, businesses that have failed to meet their obligations have been offered a 6-month amnesty period (ending 7th September 2020) to disclose, lodge and pay their outstanding super guarantees and ensure their payroll is set up correctly to avoid future errors.

To be eligible for the SG amnesty, businesses must declare both outstanding amounts and interest charges. 


Advantages of the super guarantee amnesty

To encourage businesses to come forward during the amnesty period, the ATO is offering a range of incentives, including no administration fees and no penalties for those who self-correct. In addition to this, payment plans can be arranged for businesses struggling to repay in time and these payments may be claimed as a tax deduction.

On a more personal level, taking advantage of the SG amnesty also allows employers the opportunity to do right by their employees and ensure they’re being accurately compensated for the work they have done. 

  • No administration fees or penalties
  • Continue to claim contributions as a business expense
  • Ensure employees are receiving the support they deserve 


Penalties of non-compliance

Businesses who fail to take advantage of the SG amnesty risk a minimum penalty of 100% of their outstanding amounts, with the maximum sitting at 200%.

In addition to financial penalties, non-compliant businesses will also need to undergo an extensive process to rectify errors, will be required to pay administration charges and will forfeit the ability to claim payments on tax returns as a business expense.


Super guarantee amnesty assistance 

Regardless of your intentions, mistakes can and do happen. In this instance, business owners are being given a great opportunity to identify and rectify non-compliance before they come under the scrutiny of the ATO.

If you have an outstanding SG amount or you’re not quite sure where you stand, the tax professionals at Simmons Livingstone & Associates are here to help. Get in touch with our team to learn more about taking advantage of the super guarantee amnesty while it’s still available.

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