The Government is currently providing an incentive for employers to bring their Superannuation Guarantee obligations up to date. Employers must apply for the amnesty by 7th September 2020. The ATO will continue auditing to identify employers not paying their employees SG. If identified before coming forward, they will not be eligible for the amnesty benefits and will also be required to pay:
Nominal interest (10%)
Administration component ($20 per employee per quarter)
Part 7 penalty (up to 200% of the SGC)
In addition, payments of the SGC will not be tax deductible.The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC) and nominal interest, that they owe their employees, for 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 Part 7 penalty. ARE YOU ELIGIBLE? To be eligible for the amnesty you must meet and fulfill all the following criteria:
Should not have been informed the ATO are examining/intends to examine your SG obligation for the quarter(s) your disclosure relates to
Disclose an SG shortfall for an employee that you haven’t already disclosed (or disclose additional amounts of SG shortfall for a quarter previously disclosed)
Disclose for quarter(s) starting from 1 July 1992 to 31 March 2018.
Lodge your completed SG amnesty form with the ATO no later than 7/09/2020
You will also need to pay the amount owing to the ATO or set up a payment plan after you lodge the SG amnesty form, to avoid being disqualified and losing the benefits of the amnesty. HOW TO APPLY To apply for the amnesty, you must:
Download the approved SG amnesty form XLS 613KB
Complete one form per quarter as per instructions
Check the amounts are correct and there are no errors on your form
Complete the declaration to confirm you are applying for the amnesty
Save the form as an .xls file type
Lodge through the portal – New message, Topic = Super, Subject = Lodge SG amnesty. Attach SG amnesty form
If eligible the ATO will inform you within 14 days
Statement will be sent out by ATO and you can then pay in full or make a payment plan on the portal
Only payments made before 7th September 2020 will be tax deductible including payment plan installments or payments in full.
If you would like East Coast Bookkeeping and Business Solutions to prepare and lodge on your behalf, we are offering our services for a minimal fee of $50+GST per quarter.
Please get in touch if you would like some help.