Tax Laws Amendment (2008 Measures No.2) Bill 2008, which provides relief to employers who make superannuation contributions after the due date, has received Royal Assent.
"This is an important date for business as the Rudd Government has delivered on its commitment to provide fairer treatment for employers who make super contributions after the due date," said Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law.
"This legislation now ensures late superannuation contributions will still count towards reducing the required superannuation guarantee payments of an employer. These changes mean employers will not have to pay the same amount twice."
Under Superannuation Guarantee (SG) law, employers are required to make compulsory super contributions at least quarterly on behalf of their employees.
Before this reform, if employers failed to make the required contributions within 28 days of the due date, they were required to make payments direct to the Australian Taxation Office through the SG charge.
The problem was some employers were unaware of this ruling and incorrectly made their late SG payments direct to their employer's superannuation fund.
"Employers, including many small businesses, were treated as though they hadn't paid their SG payments at all – so in effect they were forced to pay twice," Minister Sherry said.
This legislation will now extend the late payment offset for employers so late contributions will count towards reducing the SG charge, resulting in employers no longer having to pay their SG payment twice.
As of yesterday, the offset is available to all employers that mistakenly pay late SG payments to their employees' superannuation funds and will also include employers who have previously been assessed with the SG charge, if their SG charge remains unpaid.
"The Rudd Government has listened to the concerns raised by the business community and taken action to reduce their super red tape burden.'' Minister Sherry said.