On 24 May 2018, the government announced a one-off opportunity for employers to self-correct past outstanding or unpaid superannuation guarantee (SG) without penalty. Accountants in Sydney need to stay informed about this amnesty and its potential impact on their clients’ obligations. Subject to the passage of legislation, the proposed amnesty was intended to be available for 12 months from 24 May 2018 to 23 May 2019.
To date, the Amnesty bill has not been enacted, and with an election coming up and the possibility of a new government, all indications are that it will now not pass into law.
Under the current law, if you’ve missed a payment or haven’t paid an employee’s super on time, you must lodge an SG charge statement and pay the relevant outstanding SG liability. Additionally, the late payments would then not be tax deductible. Under the amnesty, the administrative component of the SG charge would not apply, and late payments could be claimed as tax deductions.
The Tax Office has confirmed that until the law giving effect to the proposed Superannuation Guarantee Amnesty is enacted, they will continue to apply the existing law, including applying the mandatory administration component to SG charge statements lodged by employers.
So where does that leave you? As mentioned above, the likelihood now is that the legislation will not pass without any guarantees. For now, you can only attend to your affairs based on the existing law. Additionally, as we advance we recommend you review your Super Guarantee obligations to identify any missed or late payment of superannuation and, if found, attend to them under the current law.
Indicators to look out for that you might have an SG shortfall include:
- Late payments of SG (i.e. later than the 28th day after the end of the relevant quarter).
- Your accounting system (MYOB, Xero, QuickBooks etc.) doesn’t automatically calculate SG on ordinary times earnings items such as non-contingent allowances or standard overtime.
- An employee hasn’t provided their superannuation fund details, so you haven’t made an SG payment yet.
If any of these indicators sound familiar, please get in touch with us to discuss further.
Kreston Stanley Williamson Team
*Correct as of February 2019
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
