On 6 March 2020 the government introduced a Superannuation Guarantee (SG) Amnesty (The Amnesty). The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), that they owe their employees without incurring the administration component ($20 per employee per quarter) & Part 7 penalty (up to 200% of the liability).
The amnesty applies to SG shortfalls arising from 1 July 1992 to the March 2018 quarter.
Additionally, any payments of SGC made after lodging a super guarantee charge statement to the Australian Taxation Office (ATO) after 24 May 2018 and before 7 September 2020 will now be tax deductible. The ATO will automatically amend your return and apply the tax deduction and issue refunds where applicable.
** If you want to participate in the amnesty, you must apply by 7 September 2020 **
This amnesty provides you with the opportunity to review your records and correct any errors. If the ATO identifies underpaid SG amounts for a quarter that was covered by the amnesty that you have not disclosed, then penalties and additional interest charges will apply. You will also not be able to claim a deduction for the SGC paid.
To be eligible for the amnesty you must have not been informed the ATO is examining or intends to examine your SG obligation for the quarter(s) your disclosure relates to
If you wish to apply for the superannuation amnesty and are concerned that, as a result of COVID-19, you will not be able to pay the liability the ATO will allow a payment plan to help you to meet these payments.
WHY YOU SHOULD ACT NOW
The ATO’s ability to identify underpaid SG has increased through greater data visibility as a result of more frequent reporting requirements by super funds and employers. The ATO are increasingly using this capability to identify employers that have underpaid SG.
As your tax agent/business advisors, we are here to support you!!
Please contact us if you need any help with Completion & Lodgement of the Amnesty Form and we can discuss how we can assist you.