Thursday, 20 March 2008. The Government today announced that the double super guarantee payment burden incurred by employers who make late payments into their employee’s superannuation fund will be removed.

Tax Laws Amendment (2008 Measures No.2) Bill 2008 was introduced into Parliament today. The amendment will extend the late payment offset for employers so late contributions will count towards reducing the SG charge. The net effect is that employers will no longer have to pay twice.

The amendment will apply to employers who have been assessed with the SG charge before the date of Royal Assent if their SG charge remains unpaid.

Employers who fall behind with their quarterly superannuation guarantee (SG) obligations are liable for the SG charge. The SG charge generally includes the amount of the late contribution even where the employer has paid the amount into a superannuation fund, albeit late. In other words, employers are often paying their SG obligations twice under this penalty system.

The amendment had previously been announced by the former Government in October 2007 but no legislation was available nor introduced prior to the election lock down.


More information
Click here for