Employer super amnesty

On 6 March 2020 the government introduced a superannuation guarantee (SG) amnesty. This gives employers the opportunity to disclose and pay previously unpaid super guarantee charges (including nominal interest) to their employees for the quarters from 1 July 1992 to 31 March 2018.

Now’s the time to take action

With the amnesty in place, now’s a great time to check your records and ensure your SG payments are up to date and complete.

Under the amnesty, an employer won’t be charged the usual administration fee of $20 per employee per quarter or an additional super guarantee charge (also known as a Part 7) when they pay an outstanding super guarantee charge or superannuation contribution (including if they are rectifying an underpayment). Plus, all super guarantee charge payments made to the ATO after 24 May 2018 and before 7 September 2020 will be tax deductible.

How long is the amnesty available?

The amnesty is available for a six month period (6 March to 6 September 2020) so employers need to apply and self-report to the ATO before 7 September 2020. For those employers who’ve already submitted their unpaid SG contributions to the ATO (between 24 May 2018 and 6 March 2020) there’s no need to lodge this information again.

What happens if employers don’t self-report?

Employers who don’t come forward during this period may be audited. If they’re found to have underpaid employees, they will face significant financial penalties and will be required to pay the following:

  • SG shortfall (note: payments of the super guarantee charge won't be tax deductible)
  • Nominal interest (10%)
  • Administration component ($20 per employee per quarter)
  • Part 7 penalty (up to 200% of the super guarantee charge)

Flexible plans for employers impacted by Covid-19

The ATO is aware that some employers may be impacted by financial hardship due to Covid-19. If this is the case, they still encourage employers to apply for the SG amnesty. They will work with employers to establish a flexible payment plan so they can continue making payments. Find out more here.

More information

For additional information about the government’s superannuation guarantee, please visit the ATO website.