The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
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Nick Sherry

Minister for Superannuation and Corporate Law

3 December 2007 - 8 June 2009

Media Release of 13/03/2009


Amendments to Improve Superannuation Guarantee Late Payment Offset

Senator Nick Sherry, Minister for Superannuation and Corporate Law, has welcomed the successful passage through Parliament of the Tax Laws Amendment (2008 Measures No. 6) Bill which includes amendments to improve the operation of the Superannuation Guarantee late payment offset.

The existing late payment offset allows an employer who makes a late SG contribution into a superannuation fund to reduce their SG charge liability for a quarter. This ensures employers are not required to pay the SG contribution twice (once to the fund and once to the ATO).

"The amendments in this Bill ensure that an employer will only be able to use the offset if they make SG contributions before they are assessed with the superannuation guarantee charge liability.

"This measure provides an incentive for employers to make their super contributions in a more timely manner, while still providing employers with the option of using the offset to reduce their superannuation guarantee charge liability," Senator Sherry said.

The amendments also improve the operation of the general interest charge (GIC) applying to SG payments so that it will accrue on the remaining amount of any unpaid SG liability after the offset has been applied. This ensures the GIC calculation takes into account the fact that the employer has made a contribution to the fund for the employee.

These amendments will commence from the date the Bill receives Royal Assent.

13 March, 2009