POWERED BY MOMENTUM MEDIA
Employers granted amnesty to pay unpaid super
The Turnbull Government has introduced a one‑off, twelve-month amnesty for employers to come forward to pay any unpaid superannuation.
The amnesty for historical underpayment of the superannuation guarantee (SG) would complement the sweeping SG integrity package currently before Parliament, Federal Revenue and Financial Services Minister, Kelly O’Dwyer, said.
But, O’Dwyer said, employers will not be “off the hook” – to use the amnesty they must pay all that is owing to their employees, including the high rate of nominal interest.
“However, the amnesty will make it easier to secure outstanding employee entitlements, by setting aside the penalties for late payment that are normally paid to the Government by employers,” she said.
Employers that do not take advantage of the one-off amnesty will face higher penalties when they are subsequently caught – in general, a minimum 50 per cent on top of the SG charge they owe, O’Dwyer said.
In addition, throughout the amnesty period the Australian Taxation Office (ATO) would continue its usual enforcement activity against employers for those historical obligations they don't own up to voluntarily, she said.
O’Dwyer quoted estimates from the ATO which showed that in 2014-15, around $2.85 billion in SG payments went unpaid.
"While this represents a 95 per cent compliance rate, any level of non-compliance is unacceptable, which is why the Turnbull Government is giving the ATO the tools it needs to enforce compliance going forward," she said.
"We are introducing this one-off amnesty to allow employers to wipe the slate clean and pay their workers what they're owed. All Australians workers should be paid the entitlements they are owed."
The amnesty will run for twelve months from 24 May, 2018.
AUTHOR
Nicholas Grove
Nicholas Grove is a senior journalist with Money Management.
Recommended for you
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
