When employers make contributions under the SG Amnesty, it affects employees' tax treatment:
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Concessional Contributions: Contributions made to an employee's super fund through the SG Amnesty are treated as concessional contributions for the employee. These contributions might lead to tax consequences, especially if they're large one-off payments.
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Excess Concessional Contributions: Normally, employees must watch for excess concessional contributions or Division 293 tax liability, especially with large one-off contributions. However, amendments by the Amnesty Bill address unintended consequences related to these contributions.
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ATO Contributions: Contributions made by the ATO under the SG Amnesty won't lead to excess concessional contributions for employees. The Amnesty Bill allows the Commissioner to disregard or reallocate these contributions without the need for individual applications under certain conditions:
- The contribution is made by the Commissioner under Part 8 of the SGAA (after the employer paid SGC to the ATO due to SG amnesty disclosure).
- The employer qualified for the SG amnesty regarding the SG shortfall.
This exception doesn't apply if the employer directly makes a late contribution to an employee's fund to offset their SGC liability (even if it qualifies for the SG amnesty). In such cases, employees must still apply to the Commissioner for discretion regarding excess concessional contributions.
For questions, reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment with our live calendar.
- Superannuation Guarantee Amnesty (1) – Employers’ Obligations
- 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 (7) – Contributions Made Under the SG Amnesty (2)
