Employers who have historically underpaid super guarantee (SG) are being given the chance to come forward and pay up in an amnesty, announced Senator Jane Hume, which could bring in up to $160 million.
The Bill incentivises employers to come forward and pay any unpaid super in full, including interest, therefore avoiding late payment penalties.
However, those who did not take part in the amnesty, faced higher penalties when they were subsequently caught. This included a minimum 100% penalty on top of the SG charge they owed, which consisted of all outstanding super plus 10% interest and an administration fee.
The amnesty was previously announced in May 2018 to run until May 2019 but has now been extended.
Hume said: “The ATO [Australian Taxation Office] estimates an additional 7,000 employers will come forward due to the extension of the amnesty. This means around $160 million of superannuation will be paid to employees who would have otherwise missed out”.
It reinforces practices by the Government which includes 12-month jail time for those who underpay employees and greater powers for the ATO.
Add new comment