In a bid to tackle non-payment of employee superannuation, the Minister for Revenue and Financial Services announced the beginning of a 12-month Superannuation Guarantee Amnesty (the Amnesty) on 24 May 2018.
The Amnesty provides employers with a one-off chance to self-correct past super guarantee (SG) non-compliance without incurring a penalty and is available until 23 May 2019 (subject to the passage of legislation).
Employers who take advantage of the Amnesty will avoid:
penalties and charges that may apply to late payments;
and are entitled to deductions for catch-up payments made during the Amnesty period to the employee’s regulated super fund or to the ATO (should employers require a payment plan).
To make use of the Amnesty, employers must:
voluntarily admit the amounts of prior SG shortfalls including nominal interest during the Amnesty period;
and not be the subject of an audit for SG for the relevant periods.
The ATO is encouraging employers to pay their SG shortfall amounts in full, including the nominal interest straight into the employee’s super fund.
Failure to either remain current with SG payment duties or declare SG shortfalls in this period could result in higher penalties later on.
Consolidating your super can save you time and money. Consolidating your super means that rather than having multiple different accounts, all your super is in one account.
Why you should consolidate your super:
Choosing to consolidate your super means that you will no longer be paying fees to multiple super funds.
There is also less paperwork to complete each time
You will be able to track your super more easily
Before you consolidate your super:
Consider how changing super funds affects employer contributions: Certain employers may contribute more to one fund than another. In which case, you should consider switching to the fund that your employer is most compatible with.
Consider how changing super funds impacts insurance you have through the fund: Changing funds might mean you no longer receive benefits of the insurance. Double checking the details of this is particularly important if you have a pre-existing medical condition or you are aged 60 or over.
Inform your employer of any change in details they may need, to pay to your chosen super account.
Don’t simply choose the account with the highest balance. Rather, take into consideration the performance of that super fund, the fees you are required to pay, whether it is linked to any insurance and any other factors. Upon reviewing this, you may find that rather than choosing between your current super funds, starting with a completely new fund might be the best way to go.
How to consolidate to one of your current super funds:
Create an account on the myGov website
Link your myGov account to the ATO
Go to ‘Super’ and then ‘Manage’
Select ‘Transfer Super’
Transferring to a new fund
In the case you decide that transferring to a new fund is the best option, you can consolidate either by contacting the new fund directly, or using an ATO rollover form.
