Superannuation guarantee scheme: Remission of components of the SGC

Does the Commissioner have any discretion to remit the nominal interest component; the administration component; and/or the late penalty component (this component only applies to the period 1 July 1992 to 30 June 1999) imposed on an employer under a Superannuation Guarantee Charge (SGC) assessment?

The provisions of the Superannuation Guarantee (Administration) Act 1992 (SGAA) do not provide the Commissioner with a discretion to remit or reduce the amounts calculated, nor is the Commissioner empowered with a general discretion which would allow him to reduce the amounts.

The employer became liable to pay the SGC as a result of a superannuation guarantee shortfall. The SGC is composed of a number of components. The nominal interest component is calculated under section 31 of the SGAA; the administration component is calculated under section 32 of the SGAA; and the late payment penalty component was calculated under the former section 49 of the SGAA.

The issue whether the Commissioner has discretion to remit these amounts was considered in Jarra Hill Pty Ltd v FCT 97 ATC 2132; (1997) 37 ATR 1022. In that case, it was held that as there were no provisions in the legislation giving a discretion to either the Commissioner or a Tribunal, such amounts could be neither reduced nor remitted.

The Commissioner therefore has no power to remit any of the components of the SGC.