Superannuation Guarantee Amnesty (1) – Employers’ Obligations

The Superannuation Guarantee (SG) Amnesty offers employers a unique chance to rectify past unpaid SG amounts. Until 7 September 2020, they can disclose, lodge, and pay these amounts without facing administration charges or penalties.

Under the SG rules, employers must:

1. Ensure correct superannuation contributions: Before 1 January 2020, employers calculated super contributions (at 9.5% in the 2020 income year) based on an employee's Ordinary Time Earnings (OTE) quarterly. OTE generally excludes overtime payments. There's a maximum contribution base of $55,270 per quarter, beyond which SG isn't required (S.15 of SGAA).

2. Pay quarterly contributions by the due date: Payments are due by the 28th day after the end of each quarter.

3. Fulfill choice of superannuation fund obligations: Employers must offer employees a choice of fund and make payments accordingly without charging fees.

Recent amendments (from 1 January 2020) expand the SG contributions base:

• SG liability is now determined using the employee's 'OTE base,' including OTE for the quarter and any salary sacrificed super contributions.
• Salary sacrificed super contributions can't reduce the employer's SG liability from 1 January 2020 onwards.

For inquiries, reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment via their live calendar.

• Superannuation Guarantee Amnesty (2) – Consequences for Not Meeting SG obligations
• Superannuation Guarantee Amnesty (3) – Eligibility for The SG Amnesty
• Superannuation Guarantee Amnesty (4) – Benefits from The SG Amnesty
• Superannuation Guarantee Amnesty (5) – Increased Minimum Penalty for Employers Ignore the SG amnesty
• Superannuation Guarantee Amnesty (6) – Contributions Made Under the SG Amnesty (1)
• Superannuation Guarantee Amnesty (7) – Contributions Made Under the SG Amnesty (2)