Author: Emma Partenza, Manager, TAG Financial Services
Employers wishing to participate in the superannuation guarantee amnesty have until 7th September 2020 to apply to participate. So you need to act now!
As addressed in our earlier blog back in March, this one-off amnesty provides employers an opportunity to disclose and pay all previously unpaid super guarantee charges owing to their employees for any quarters from 1 July 1992 to 31 March 2018.
Superannuation Guarantee Charge (SGC) payments made before the deadline will be tax deductible to your business.
Business already having disclosed unpaid SGC to the ATO have no further requirement to apply again before 7 September 2020. However, business who have yet to come forward to disclose outstanding superannuation guarantee amounts need to do so and must register for the amnesty by 7 September 2020 with the ATO.
Employers taking advantage of the amnesty will benefit from not incurring the administration or penalty components of the SGC shortfall amount for its employees. A huge incentive to ensure superannuation obligations are up to date before the deadline.
The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG. If they identify those employers before they came forward, those businesses would not be eligible for the benefits of the SG amnesty.
Impacted by COVID19?
For businesses impacted by COVID19 and wishing to apply for the SGC amnesty but may be concerned of their ability to pay the outstanding SGC liability are urged to still apply to participate in the amnesty by 7 September 2020.
The ATO have stated they are willing to work with businesses and enter into arrangements to establish flexible payment plans for the business to continue making payments. They could also consider extend payment of SGC liabilities beyond the deadline of 7 September.
Payments of SGC after the deadline will not be tax deductible to the business.
If you have any questions, please contact us on 03 9886 0800 or via email.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).