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Unpaid super amnesty extended
Employers who have historically underpaid super guarantee (SG) are being given the chance to come forward and pay up in an amnesty, announced Senator Jane Hume, which could bring in up to $160 million.
Hume announced a Bill to help incentivise employers to come forward and pay any unpaid super in full, including interest, therefore avoiding late payment penalties.
However, those who did not take part in the amnesty, faced higher penalties when they were subsequently caught. This included a minimum 100% penalty on top of the SG charge they owed, which consisted of all outstanding super plus 10% interest and an administration fee.
The amnesty was previously announced in May 2018 to run until May 2019 but has now been extended.
Hume said: “The ATO [Australian Taxation Office] estimates an additional 7,000 employers will come forward due to the extension of the amnesty. This means around $160 million of superannuation will be paid to employees who would have otherwise missed out”.
It reinforces practices by the Government which includes 12-month jail time for those who underpay employees and greater powers for the ATO.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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I don't believe if Senator Hume has said the right thing in the amnesty being extended as it was never legislated. In this Parliamentary term though with a different Senate it might come to pass that it is passed.
And of course many small business employers will simply fold up because they cannot either pay the initial contribution or the horrendous penalties applying. That will not be a win for anyone.
Another Ivory Tower reaction.
What the legislation fails to address are the employees in this case as when employers make significant backdated contributions and the concessional contribution cap is breached, the employee is then penalised with excess contributions tax!