On 6 March 2020 the government introduced a superannuation guarantee (SG) amnesty (the amnesty). The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, that they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018, without incurring the administration component ($20 per employee per quarter) or Part 7 penalty.
In addition, payments of SGC made to the ATO after 24 May 2018 and before 11:59 PM 7 September 2020 will be tax deductible.
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 – see Disclosures of unpaid SG between 24 May 2018 and 6 March 2020.
Employers who come forward from 6 March 2020 need to apply for the amnesty by 7 September 2020.
By law, the ATO must receive your SG amnesty application forms by 11:59pm Monday 7 September 2020 to be eligible. To remain eligible for the amnesty, you must pay your SG shortfalls, as well as interest charges. However, if you apply for the amnesty and are eligible the benefits, the ATO can work with you to establish a payment plan which is flexible to help you to continue making payments.
These arrangements include:
flexible payment terms and amounts which we will adjust if your circumstances change
the ability to extend the payment plan to beyond 7 September 2020 – the end of the amnesty period. However, only payments made by 7 September 2020 will be deductible.
As your tax agent, we can lodge the amnesty application forms via Online services for agents. Once lodged, the ATO will advise which quarters are eligible for the amnesty.
If you have disclosed unpaid super between 24 May 2018 and 6 March 2020, you don't need to apply or lodge again. The ATO are identifying eligible disclosures and amending assessments as quickly as possible.
For some people, this will result in you receiving a refund for the previously paid administration charges. Your financial institution details with the ATO need to be correct, to allow the ATO to issue your refund in a timely manner.
For more information please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au