Yesterday, legislation was introduced that would provide a one-off opportunity for employers to self-correct past super guarantee (SG) non-compliance without penalty.
Subject to the passage of legislation, the amnesty will run from 12 months from 24 May 2018 to 23 May 2019.
Here are the main things you need to know:
What does Amnesty apply to?
The Amnesty applies to previously undeclared super guarantee (SG) shortfalls for any period from 1 July 1992 up to 31 March 2018.
Employers must voluntarily disclose these previously undeclared SG shortfalls during the Amnesty and before the commencement of an audit to receive the benefits of the Amnesty period.
Not coming forward during the Amnesty period may result in even higher penalties in the future for employers who are not up-to-date with their SG payment obligations.
Benefits of the Amnesty?
- The Administration component of the Super Guarantee Charge (SGC) is not payable.
- Part 7 penalty will not be applied. This is a potential HUGE break!
- All catch-up payments made during the 12-month Amnesty period will be tax-deductible. (Another huge win)
What if I can’t pay?
Payment is essential for you to remain eligible for the Amnesty. Employers will still be required to pay all employee entitlements. This includes the unpaid SG amounts owed to employees and the nominal interest, as well as any associated general interest charge (GIC).
If you have difficulties paying the full amount, you can set up a payment plan with the ATO to pay the amount owing over an agreed period. If you need to revise your ATO payment plan, or set up a new one, you should do this as soon as possible to avoid losing the benefits of the Amnesty.
How do I apply for Amnesty?
First of all, I’d wait until this is passed into law… incase it all goes to heck and dates change or something. You want to ensure you get the benefit of Amnesty here.
You’ll need to calculate the amount of Super Guarantee Charge payable.
If you can make full payment directly to the super fund(s), then you should complete and lodge the SG Amnesty Fund Payment Form.
If you cannot pay the amount in full, or you have already lodged a SGC Statement and received an assessment, you should lodge the SG Amnesty ATO payment form.
These forms are to be lodged via the Business Portal. Alternatively, your Tax Agent or BAS Agent should be able to assist you.
We’ll be keeping a close eye on this one and will let you know when it receives Royal Assent and is definitely a go.
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