Avoid penalties – take advantage of the SG Amnesty! Mar 3, 2020


Businesses have an opportunity to correct any unpaid Super Guarantee (SG) payments without penalty during a one-off amnesty, thanks to a new law.

Legislation to create a Super Guarantee (SG) Amnesty passed through Parliament last week. The amnesty will enable employers to self-correct their historical underpaid SG shortfalls without incurring additional penalties.

Penalties for missed SG payments

Under existing law, if you’ve missed a payment or haven’t paid an employee’s SG on time, you are required to lodge a Super Guarantee Charge (SGC) Statement. You will then need to pay the SGC on any SG shortfalls.

The SGC is generally not tax-deductible and is made up of:

  • SG shortfall amounts
  • interest on those amounts (currently 10%)
  • an administration fee of $20 per employee, per quarter.

Concessions under the SG Amnesty

The penalty concessions include:

  • the removal of the $20 per employee per quarter administration charge
  • making the payment of the superannuation guarantee charge tax-deductible during the period.

The amnesty will run for six months after the legislation receives Royal Assent and apply to any SG shortfalls that occurred from 1 July 1992 up until the quarter ending March 2018.

Employers will still need to pay the 10% interest on any shortfall amounts, as this is not a penalty, but is designed to compensate the employee for lost earnings.

What you can do

If you have superannuation shortfalls to declare, it is a good idea to do so as soon as possible. Lodging an underpayment notification can be complex, so it can take longer than expected. It might be better to start the process sooner rather than later to maximise the opportunity to lodge within the six-month amnesty period.

If you can pay the amount in full, you can complete a payment form and submit payment electronically via the ATO business portal. If you are unable to make the payment in full, you can still lodge a payment form and the ATO will contact you to arrange a payment plan.

If you have lodged an SGC Statement since 24 May 2018 and have been charged the administration fee, you should ask the Australian Tax Office for a refund.

If you’d like any more information about the SG Amnesty, Intrust Super can help! Get in touch on 132 467 or talk to your Relationship Manager directly. We are at your service.