The government super guarantee (SG) amnesty which has applied since March 2020 ends in just under a month on 7 September 2020.
The amnesty allows employers to voluntarily disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employees, for quarters starting from 1 July 1992 to 31 March 2018.
The benefits of disclosing under the amnesty are that:
- Eligible disclosures will not incur the administration component ($20 per employee per quarter) or Part 7 penalty (up to 200% of the SGC);
- payments of SGC made to the ATO after 24 May 2018 and before 11.59pm on 7 September 2020 will be tax deductible.
The ATO’s data matching ability continues to increase with more frequent reporting by both super funds and employers (through Single Touch Payroll).
Employers will face significant penalties if they do not take advantage of the amnesty and are subsequently audited and found to have underpaid employees as in addition to the SG shortfall they will be liable for:
- the administration component ($20 per employee per quarter);
- up to a 200% Part 7 penalty (at minimum 100% if remission is applicable);
- nominal interest (10%);
- the general interest charge (GIC); and
- in addition the SGC paid will not be tax deductible.
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