The Australian Government has announced its plans to allow employers with outstanding superannuation debts, a 12-month amnesty to pay overdue superannuation to their employees before penalties will be imposed.
It is reported that in 2014-15 alone, approximately $2.85 billion in Superannuation went unpaid.
To comply with the amnesty guidelines, employers must pay all of the superannuation that is owing to their employees, including nominal interest. The usual hefty penalties for late payment will not be applied during the amnesty period.
According the Australian Government’s announcement, employers that do not take advantage of the amnesty will face higher penalties when they are subsequently caught.
Throughout the amnesty period the ATO plans to continue its usual enforcement activity against employers who do not voluntarily disclose their historical obligations.
The SG Amnesty is a great opportunity for businesses to wipe their slate clean and for employees to be paid the entitlements that they are rightfully owed.
The amnesty is a draft law before parliament.
Click here to read the Australian Government’s announcement of SG Amnesty.