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Superannuation Amnesty for Employers

written by Darren Hagarty

The Australian Taxation Office (ATO) are continuing to target employers who aren’t paying the full and correct amount of superannuation guarantee for their employees.

In addition to the ATO ramping up their compliance activities, there is also proposed legislation which will contain harsher repercussions for affected employers, including the requirement to undergo education, the issuing of payment directions to the employer or company directors personally, and even the threat of imprisonment.

However, there is also draft legislation that, if passed through Parliament, will provide employers with a one-off window of opportunity (referred to as an “amnesty”)  to rectify any outstanding, unreported superannuation. The amnesty will have a number of attractive features including:

  • no penalties;
  • a tax deduction for the late-paid super (normally a tax deduction is denied when super is not paid on time)
  • the ability to make an arrangement to pay off the outstanding super, once reported, over a period of time.

The amnesty is contained within a piece of legislation known as the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018. The legislation is not yet law and it may be a few weeks (or longer) before we know whether the legislation passes.

Darren Hagarty is a Director of PT Partners.


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