Employers : Superannuation Guarantee Amnesty Ends Soon!

Time is running out for employers to take up the Governments Superannuation Guarantee (SG) amnesty. The amnesty expires 11:59pm on 07 September 2020.

What is this SG amnesty for?

The amnesty allows eligible employers to disclose and pay the SG owing from the period beginning 01 July 1992 and ending 31 March 2018 without incurring any of the penalties and charges that would normally apply.

This pardon on penalties and charges can be a significant saving for some businesses. The penalty is a minimum 100% (and up to 200%) of the SG owing that has not be reported, also a $20 administration fee per employee per Superannuation quarter that remains outstanding.

The overdue SG reported and paid before the amnesty period expires will also be tax deductible.

How do you participate in the amnesty?

• download and complete the SG Amnesty form

• a separate SG Amnesty form must be completed for each Superannuation quarter you are reporting

• if you have more than 3,000 employees call the ATO 131020 for a larger form

• complete the declaration to confirm you are applying for the amnesty

• save the form as an .xls file (other file types may not be accepted)

• applications must be received by the ATO by 11:59pm on 07 September 2020

• the completed forms must be kept for 5 years

If you are eligible for the amnesty

• you will be informed in writing with 14 business days

• you won't be charged the $20 administration fee per employee per quarter

• you won't be charged the penalties

• you will need to pay or set up a payment plan to pay the total SG owed

What happens if you don't come forward before the amnesty expires?

Employers with unreported and unpaid SG amounts that do not come forward before the expiry of the Amnesty risk being discovered by the ATO and the severe penalties and charges that will be applied.

The overdue SG will not be tax deductible when it is paid.

For further information contact Nicole at our office.