Part 7 Penalty Waived amid Super Guarantee Amnesty

Part 7 Penalty Waived amid Super Guarantee Amnesty

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On 24 May last year, the government announced a superannuation guarantee (SG) amnesty which would give employers an opportunity to rectify past SG non-compliance without penalty.

The Tax Office has now confirmed it has waived the Part 7 penalty in full for those who have made a voluntary disclosure.

Employers will still have to pay the SG they owe to their employee, the interest amount, and the $20 administration component per employee per quarter.

The benefits of the proposed amnesty was set to include a waiver of the administration component, Part 7 penalty, and allowing all catch-up payments during the 12-month amnesty period to become tax-deductible.

Accountants and their clients should consider advising clients to make a voluntary disclosure despite the hold up.

“If you have an SG obligation and you get caught in an audit, you’re going to face the full penalty regime”.

Since 1 July 2018, the ATO have completed nearly 18,000 compliance cases around SG payments and raised liability of over $450 million.

Rohan Manokaran

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