Businesses that have historical unpaid superannuation can breathe a sigh of relief after the government passed its amnesty earlier this week.
The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019, which provides a one-off chance to self-correct historical unpaid super from July 1, 1992, to May 24, 2018, finally passed through both Houses of Parliament and is now awaiting royal assent.
The one-off amnesty was originally announced in May 2018, and since this time more than 7000 businesses have come forward to report historical unpaid super.
The amnesty will expire six months after the date of royal assent and provides reduced penalties and fees to encourage employers to disclose historical non-compliance and pay any Super Guarantee charge imposed regarding any shortfall. It will also allow employers who qualify to claim tax deductions for the payments.
Businesses that do not self-correct during the amnesty will face penalties. These penalties will be higher than minimum penalties, for failing to come forward during the amnesty.
The bill will also limit the Commission’s powers to remit penalties outside of the amnesty period.
If you have historical unpaid superannuation and need some assistance, please contact us, and we will help you disclose to the ATO.