Unpaid Super Guarantee Amnesty receives Royal Assent

The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 has received Royal Assent on 6 March 2020 after it was passed by Parliament on 25 February 2020.

This Bill "amends the Income Tax Assessment Act 1997 and Superannuation Guarantee (Administration) Act 1992 to provide for a one-off amnesty to encourage employers to self-correct historical superannuation guarantee non compliance; and Superannuation Guarantee (Administration) Act 1992 to limit the Commissioner of Taxation’s ability to remit penalties for historical superannuation guarantee non-compliance, where an employer fails to disclose information relevant to their historical superannuation guarantee shortfall. "

What does this mean?

So from 6 March 2020, employers who have superannuation that they have not paid their staff for the quarters between 1 July 1992 and 31 March 2018 can now report and pay these without incurring administration charges or penalties - interest will still apply.

Once the amounts are paid (during the amnesty period), they will become allowable deductible expenses for income tax purposes. 

The amnesty will cease at 11:59pm on 7 September 2020 - 6 months time.

How do you apply for the amnesty provision?

Tax and BAS Agents (hey, that's us!) are able to apply for the amnesty on behalf of their clients. 

The approved form should be downloaded from the ATO website and complete one form per quarter of unpaid superannuation.

Am I eligibile for the amnesty?

To be eligible for the amnesty you must meet and fulfil all the following criteria. You must:

Note: You will also need to pay the amount owing to the ATO or set up a payment plan after you lodge the SG amnesty form. You need to do this to avoid being disqualified and losing the benefits of the amnesty.

Super guarantee amnesty key dates

Description Dates
Quarters that qualify 1 July 1992 to 31 March 2018
Quarters that don't qualify Quarter commencing 1 April 2018 onward
Amnesty period 24 May 2018 to 6 September 2020
(see note 1)
No need to apply or lodge again if already notified ATO of unpaid super 24 May 2018 to 6 March 2020
(see note 2)
Need to apply for the amnesty on the SG amnesty form to be considered for amnesty Date of royal assent 6 March 2020 to 7 September 2020
(see note 1)
Payments of SGC eligible for the tax deduction 24 May 2018 to 7 March 2020
(see note 1)
Payments of SGC not eligible for the tax deduction Before 24 May 2018 and after the end of the amnesty period 7 September 2020
(see note 1)
Minimum Part 7 penalty of 100%
(see note 3)
generally have a minimum penalty of 100% applied
From the day after the end of the amnesty period 7 September 2020
(see note 1)

Table notes:

Would you like some help?
If you aren't sure of where to start, don't want to or don't have time to handle the administration of the paper work, or you need some assistance or guidance to navigate this or any other area of bookkeeping or accounting, get in touch with us today for your free 1 hour consultation to get to know your circumstances and how we can assist you.

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