The superannuation guarantee amnesty, introduced by the Federal Government earlier this year on 6 March, will end next week.
The amnesty allows employers the opportunity to disclose and pay previously unpaid super guarantee charge (SGC), including any interest they owe their employees for quarters starting from 1 July 1992 through to 31 March 2018.
If you think your business may not have made all eligible superannuation payments to employees, then this is the perfect opportunity to catch up without penalty.
Notably, eligible disclosures will not incur the administration component, which is $20 per employee per quarter.
In addition, payments of SGC made to the Australian Taxation Office (ATO) after 24 May 2018 and before 11.59pm on 7 September 2020 will be tax deductible.
The time to act is now
With the 7 September deadline for the super guarantee amnesty fast approaching, time really is running out for employers to declare any outstanding super or potential non-compliance with their SG obligations, before much tougher penalties apply.
MWM’s team are well aware of the urgency and impact of not meeting the deadline for the super guarantee amnesty could have on many employers and are here to assist you with a level-headed approach to help your business.
Business owners need to be aware that the Tax Office’s ability to identify underpaid employee SGC payments has increased through the potential for greater data visibility, which is the result of more frequent reporting by super funds and employers.
It is important to remind our clients that employers identified by the ATO as not paying their employees Super Guarantee will not be eligible for the benefits of the amnesty and will be required to pay the Super Guarantee shortfall, nominal interest (10%), administration component $20 per employee per quarter and the Part 7 penalty, which is up to 200% of the SGC. They will also miss out on the benefit of tax deductibility on those SGC payments.
Employers will also need to pay the amount owing to the ATO or set up a payment plan after lodging the SG amnesty form. This is required to avoid being disqualified and losing the benefits of the amnesty.
Business owners can check your eligibility for the Super Guarantee Amnesty via the ATO website – Superannuation-guarantee-amnesty / Eligibility for the amnesty
If you have any questions about the SG Amnesty and how it may affect you please contact us today at mwmadvisory.com.au/contact or call 07 5596 9070 to speak to your accountant.