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In brief - It may be beneficial for employers that are
considering voluntary disclosure of SGC liabilities to hold off
until the Bill is passed
The Federal government recently introduced legislation to
implement a revised version of the superannuation guarantee amnesty
that lapsed when the Federal election was called. My article Voluntary disclosure on unpaid superannuation guarantee charge
liabilities has more information on the previous version
of the amnesty.
The revised amnesty is contained in Treasury Laws Amendment
(Recovering Unpaid Superannuation) Bill 2019 (Cth). The
revised amnesty applies to employers that voluntarily disclose
superannuation guarantee charge (SGC) liabilities within six months
after the Bill receives royal assent.
Like the previous version, the revised amnesty:
will apply to SGC liability for any period from 1 July 1992 to
31 March 2018 (periods after 31 March 2018 are not eligible)
allows employers to claim tax deductions for the SGC
will not impose the administration component of the SGC ($20
per employee per quarter), and
will not impose penalties
The difference is that if voluntary disclosure is not made
within six months after the Bill receives royal assent, penalties
cannot be remitted by the ATO below 100% of the SGC. Effectively,
this imposes a minimum penalty of 100% for employers that do not
voluntarily disclose.
The ATO has indicated that it will apply the current law until
the Bill is passed. See
proposed superannuation guarantee amnesty. The Bill has been
referred to the Senate Economics Legislation Committee and its
report is due by 7 November 2019.
The differences between the current law and the revised amnesty
are:
Current law
Revised amnesty
The SGC is not deductible.
The SGC is deductible.
The administration component is payable.
The administration component is not payable.
The administration component is not payable.
No penalties are imposed if voluntary disclosure is made during
the amnesty period. Disclosure outside the amnesty period will be
subject to a minimum penalty of 100% of the SGC.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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