Superannuation Amnesty

On 24 May 2018, the Federal Government announced the commencement of a 12 month Superannuation Guarantee Amnesty for historical underpayment of the Super Guarantee (the Amnesty).

The Amnesty is a one-off opportunity for employers to self-correct past Super Guarantee non-compliance without penalty. Subject to the passage of legislation, the Amnesty will be available from 24 May 2018 to 23 May 2019. 

Employers who voluntarily disclose previously undeclared Super Guarantee shortfalls during the Amnesty and before the commencement of an audit of their Super Guarantee will:

  • Not be liable for the administration component and penalties that may otherwise apply to late Super Guarantee payments, and
  • Be able to claim a deduction for catch-up payments made in the 12-month period.

Employers will still be required to pay all employee entitlements. This includes the unpaid Super Guarantee amounts owed to employees and the nominal interest, as well as any associated general interest charge.  

The Amnesty relates to underpayments between mid-1992 and March this year. Employers who don’t take advantage of the one-off offer will face higher penalties if caught.

Disclaimer: the short summary above is not legal advice and for more information on the Amnesty go to the ATO’s website or call NECA Legal (WA) Pty Ltd on (08) 6241 6129 or email necalegalwa@ecawa.org.au.