On 6 March 2020, the Australian Government introduced a superannuation guarantee amnesty. The amnesty allows employers to disclose and pay previously unpaid superannuation guarantee charges (SGC), including interest, they owe their employees, for the 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 a Part 7 penalty.
Employers who come forward from 6 March 2020 need to apply for the amnesty by 7 September 2020.
Why should you look into the Superannuation Guarantee Amnesty now?
With the introduction of Single Touch Payroll and more frequent reporting requirements by super funds, the ATO’s ability to identify underpaid SG has increased.
If the ATO identifies underpaid SG amounts for a quarter that was covered by the amnesty that you have not disclosed, in addition to the SG shortfall you will also be liable for:
- the administration component ($20 per employee per quarter);
- up to a 200% Part 7 penalty (at minimum 100% if remission is applicable);
- nominal interest (10%);
- the general interest charge (GIC).
In addition, you will not be able to claim a tax deduction for the SGC paid.
For more information on eligibility and the process, please visit the ATO Superannuation Guarantee Amnesty page.
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Disclaimer
The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact Employment Innovations for advice.