Superannuation Guarantee Amnesty
Under the Superannuation Guarantee law, if super is not paid to employees by the due date which is 28 days after the end of each quarter, significant penalties can be incurred. Including:
- Loss of tax deductibility
- Administration charges
- Interest + penalties
In the 2018 Budget, in an attempt to improve compliance, the government announced an amnesty for employers who come forward voluntarily and advise of either late or unpaid super. This legislation was passed in March 2020 and with other events might not have the attention it deserved. As a result, if:
- You have an unpaid super obligation, or
- Paid your super obligation late
And you disclose (and pay) outstanding amounts, then you will be able to
- Claim tax deductions
- Avoid the administrative charges
- Avoid penalties
Please note, the amnesty applies for any quarter between 1 July 1992 and 31 March 2018. If the ATO has started an audit investigation into your business or if they have given you formal warning of an investigation, the amnesty won’t be available.
Note, the commissioner normally has the discretion to remit penalties, however in cases where the amnesty hasn’t been taken advantage of, the commissioner must assess penalties of 100% of the amount unpaid or paid late.
If this applies to you, it is important to make this disclosure soon. The amnesty expires on 6th September 2020. If you believe you can apply for the amnesty, please contact us so we can discuss.
Date Published: 12 June 2020