SG Amnesty

On 6 March 2020, the government introduced a superannuation guarantee (SG) amnesty.  The SG Amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, that they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018.  Eligible disclosures during the amnesty period will not incur the administration component ($20 per employee per quarter) or Part 7 penalty.

In addition, payments of SGC made to the ATO after 24 May 2018 and before 11.59PM 7 September 2020 will be tax deductible.

Prior to the introduction of the SG Amnesty an entity was denied a deductible for SGC under section 26.95 of Income Tax Assessment Act 1997.

Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again – the ATO will assess each entities eligibility and apply.

Employers who come forward from 6 March 2020 need to apply for the amnesty by 7 September 2020.