It's Time To Fix Unpaid Super
February 28, 2020
Unpaid super amnesty bill passes Parliament
The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 gives a one-off amnesty to employers, offering them an opportunity to get up to date with outstanding super payments to current and past employees, without being slugged with the harsh penalties that usually apply.
"This policy is all about reuniting hardworking Australians with their super," Assistant Minister Jane Hume said. "We anticipate at least $160 million of super will be paid to Australian workers who would otherwise miss out."
Since the one-off amnesty was originally announced in 2018, over 7,000 employers have already come forward to voluntarily disclose historical unpaid super.
The Treasury now estimates an additional 7,000 employers will come forward in the next six months before the amnesty ends.
"Employers will not be off the hook. To use the amnesty, they must still pay all that is owing to their employees, including the high rate of interest. However, the amnesty will make it easier for workers to secure the super they are owed by not hitting employers with the penalties usually associated with late payment," Ms Hume reminded.
"If employers do not take advantage of the amnesty, they will now face significantly higher penalties when they are caught – in general, a minimum 100 per cent penalty on top of the SG shortfall they owe, and up to 200 per cent for the most serious cases."
In addition, throughout the amnesty period the ATO will still continue its usual audit and enforcement activity against employers for historical obligations they do not own up to voluntarily.
The amnesty will expire six months after the day the bill receives royal assent.
"We encourage employers to check they don’t owe outstanding super – and if they do, to take advantage of this once-only opportunity to set things right before much tougher penalties apply," Ms Hume concluded.
To take advantage of this opportunity and get your superannuation up to date for your workers, contact us.
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