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.
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.