Superannuation Guarantee Amnesty (CGT)

Rede Accountants Gold Coast, Brisbane & Toowoomba

On the 24^th of May 2018, the Minister for Revenue and Financial Services proposed the commencement of a 12 month Superannuation Guarantee Amnesty.

Subject to the passage of the legislation the amnesty will be available from 24 May 2018 to 23 May 2019.

Eligibility for the Amnesty

To be eligible for the amnesty employers must

• Voluntary disclose amounts of all Superannuation Guarantee shortfall within the 12 month amnesty period
• Disclose all amounts of Superannuation Guarantee shortfall that have not previously been disclosed and
• Not be subject to an audit of your Superannuation Guarantee for the relevant periods

Benefits of the Amnesty

• The administration component of $20 per employee per period  will not be payable
• The part 7 penalty will not be applied
• All catch-up payments made during the 12 month amnesty period will be tax deductible

Payment Options

• Where the employer has the ability to pay the full Superannuation Guarantee shortage amount immediately then the shortfall needs to be paid directly into the employees super fund account.  The payment should be paid on the same day the amnesty application is lodged.
• When the employer cannot pay the full Superannuation Guarantee shortfall amount immediately then the shortfall will need to be paid to the ATO.   Payment arrangements can be entered into with ATO to pay the amount owing over an agreed period.

Failure to Pay

• Payment is essential for the employer to remain eligible.
• The amnesty may be deemed invalid if the payment is not paid on time or the terms of payment arrangement are not adhered to.
• Part 7 penalties and the administration charge may be applied on the outstanding amounts.

Application

The payment option chosen will determine the application form to be completed.    

• If you are able to pay the fullSuperannuation Guarantee shortfall amount immediately, the formSuperannuation Guarantee Amnesty Fund payment form needs to completed and lodged.
• If you choose to pay the ATO and set up a payment arrangement, the form Superannuation Guarantee Amnesty ATO payment form needs to be completed.

As of 28^th of June 2018, the legislation had not been enacted as yet.  If you are considering applying for the amnesty please contact our office to discuss the process.