This amnesty gives employers the opportunity to voluntarily bring their superannuation obligations up to date and pay all overdue employee superannuation in exchange for reduced or waived penalties. Our blog post in Sept 2019 discussed the re-introduction of the Superannuation Guarantee Amnesty Bill. This bill was passed on 24 February 2020 by both Houses of Parliament and is waiting Royal Assent.
As discussed in our previous blog post:
The superannuation guarantee amnesty will apply for 12 months from 24 May 2018 to 6 months after the legislation receives Royal Assent.
Employers are eligible for the amnesty if:
– The unpaid superannuation was accrued during the periods from 1 July 1992 to 31 March 2018. The amnesty does not cover super that relates to 1 April 2018 to present.
– The employer was not previously subject to an audit on those periods.
– The employer discloses and pays all unpaid superannuation amounts (together with the nominal interest charges) using the required ATO forms.
Employers who take advantage of the amnesty and voluntarily disclose and bring their superannuation obligations up to date will be able to:
– Avoid liability for a range of administration, interest, director penalties etc that would normally be imposed. The ATO will waive these penalties.
– Payments will be tax deductible for the employer (late superannuation payments are not deductible to the employer usually).
If employers do not take advantage of the amnesty period and make voluntary disclosure, the ATO will impose even harsher penalties.
Employers that are affected should take advantage of the amnesty before it expires in August 2020. Employers that are eligible under the amnesty will receive reduced penalties and the ability to claim tax deductions for the super payments. Unpaid super and employee entitlements is a key area of focus for the ATO.
Please contact us to find out more. The team at EMspire Advisory are experienced accountants in Sydney and would like to help you create, grow and succeed in business.
Please note that this information is not specific and is general in nature and cannot be relied upon as advice. Please contact us for specific advice for you and your circumstances.