On 6 March 2020, the government introduced superannuation guarantee amnesty (SG amnesty) received royal assent.
An employer will be able to benefit from this one-off amnesty by disclosing and paying previously unpaid super guarantee charge (SGC) for quarters starting from 1 July 1992 to 31 March 2018. In addition, payments of SGC made to the ATO after 24 May 2018 and before 11:59pm 7 September 2020 will be tax deductible.
TAG Partner, Jason Roccasalvo said that this can really benefit the self-employed and small business owners.
“This is a great opportunity to review your super payments and check you don’t owe any outstanding super. As a business owner you have an obligation to ensure all payments are timely and accurate. In some instances we have found clients who have accidentally forgotten to pay themselves superannuation.”
Action Needed:
- 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.
- Employers who come forward from 6 March 2020 need to apply for the amnesty.
The amnesty applies for a period of 6 months from royal assent. The clock is now ticking.
The ATO has said, “The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG. If we identify these employers before they come forward, they will not be eligible for the benefits of the amnesty.”
Find more information on the ATO website – https://www.ato.gov.au/Business/Super-for-employers/Superannuation-guarantee-amnesty/
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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).