On 6 March 2020, the government introduced a Super Guarantee (SG) Amnesty.
This amnesty was intended to give employers the opportunity to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018.
Eligible disclosures will not incur the administration component ($20 per employee per quarter) or Part 7 penalty.
When does the Super Guarantee Amnesty (SG) end?
Employers have until the 7th of September 2020 to disclose, lodge and pay unpaid Superannuation amounts for their employees.
Payments of SGC made to the ATO after 24 May 2018 and before 11.59pm on 7 September 2020 will be tax deductible. without any administration charges or penalties during this amnesty.
Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again. But employers who come forward from 6 March 2020 need to apply for the amnesty by 7 September 2020.
If you are behind in Super payments to your staff, the most important thing you can do is act on this opportunity by getting your obligations up to date. Otherwise, you could experience some significant penalties if you don’t come forward.
Am I eligible for the Super Guarantee Amnesty?
To be eligible for the amnesty, you must apply, declare and pay your Super Guarantee shortfalls and interest charges before 11.59pm on the 7th September 2020.
This will also allow you to claim these Super payments as tax deductions in your tax return, or arrange payment plans as needed.
If you do not make required payments by the deadline, you could receive a hefty penalty from the ATO.
Unsure of whether this applies to you? Give us a call on (03) 9762 7344.
How do I apply for the Super Guarantee Amnesty?
To apply for the amnesty, you must:
- lodge an approved Super Guarantee Amnesty form
- check amounts are correct and there are no errors on the forms
- complete the declaration to confirm you are applying for the amnesty
Once the ATO receives your form, they will be able to tell you which quarters are eligible for the amnesty.
According to the ATO,
“SG shortfalls for any quarter between 1 July 1992 and 31 March 2018 may be eligible for the amnesty if they haven’t been disclosed previously, or aren’t subject to a current or previous audit.”
What if I’ve lodged a SGC statement previously?
If you lodged a SGC statement back in 2018, when the SG amnesty was announced,you may be entitled to a refund for any administration charges paid.
Businesses who paid relevant administration charges will be refunded their administration charges if they meet the amnesty criteria.
If you are behind in Superannuation Payments to employees and believe this may apply to you, please give us a call on (03) 9762 7344.
That way we can help you with submitting your application and take advantage of the amnesty.