Super Amnesty

SG (Superannuation Guarantee) Amnesty – 6 Months Only

Superannuation Amnesty

In 2017 the SG gap was $2.3b or a deficit of 4% of the total expected. Government policy is that SG must be paid. Government are providing an incentive for employers to bring their SG obligations into line with the Super Amnesty.

As of 10 March 2020:

  • Royal Assent granted 10 March. It is now law.
  • Amnesty applies until 7 September 2020. 100% penalty thereafter. No discretion.
  • We strongly recommend a full review of any late payments and that a form be lodged for any individual quarter that has a late payment
  • It is first about lodging forms, it is then about paying.
  • Late super payments will be deductible if paid before 7 September.
  • Payment Plans can be for longer periods but any payments after 7 September are not deductible.
  • There is a 6 month window in which to notify the ATO and pay outstanding SG.

* The amnesty relates to SG that is outstanding for periods up to the March 2018 quarter.

Super Amnesty during the COVID-19 – Unlikely the SG Amnesty period will be extended

This does not remove the benefits of having any applicable employers catch up their declarations of outstanding SG. If you lodge the SG Amnesty forms and enter a payment plan then No penalties and No admin fee ($20 per employee per quarter). If you don’t and get caught later then SG to be paid, at least 100% of the SG as a penalty and the admin fee.

Payment plans may be able to be entered with a delayed start date ie after the COVID-19 period. The impact of COVID-19 and the amnesty is that many businesses will not be able to pay the SG without a deferred payment plan and therefore will lose tax deductibility

Further information from the ATO can be found by clicking here

In Short: Consider getting this done during the amnesty period until 7 September. Contact us here at Accurate Balance for further information on how we can help!

Disclaimer: All or any advice contained in this newsletter is of a general nature only and may not apply to your individual business circumstances. For specific advice relating to your specific situation, please contact me for further discussion

Content attribution to The Institute of Certified Bookkeepers

 

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