Superannuation guarantee amnesty

Updated: 14 April, 2020.


To remain eligible for the amnesty, you must send SG amnesty application forms by 11:59pm Monday 7 September 2020, and pay SG shortfalls, as well as interest charges.


These arrangements include:

  • Flexible payment terms and amounts.

  • The ability to extend the payment plan to beyond 7 September 2020 – the end of the amnesty period. However, only payments made by 7 September 2020 will be deductible.


If the clients disclosed unpaid super between 24 May 2018 and 6 March 2020, they don't need to apply or lodge again. The ATO is identifying eligible disclosures and amending assessments as quickly as possible.


What you need to know

If you want to participate in the amnesty, the law requires you to apply by 7 September 2020.


To help you to continue making payments, we will work with you to establish a payment plan that is flexible. These arrangements include:

  • Flexible payment terms and amounts.

  • The ability to extend the payment plan to beyond 7 September 2020, the end of the amnesty period.

However, only payments made by 7 September 2020 will be deductible.


If you are unable to maintain payments (after we work with you), the law requires us to disqualify you from the amnesty and remove the amnesty benefits. However:

  • The disqualification will only apply to any unpaid quarters

  • We will advise you which quarters are unpaid (we will re-apply the administration component of $20 per employee for these quarters, included in the disqualified quarter).

  • We will also take your circumstances into account when deciding whether a Part 7 penalty should be applied to your disclosure – a review of yours circumstances may result in the Part 7 penalty being reduced to nil.


We also recognize that for some employers who are eligible and lodged a super guarantee charge (SGC) statement between 24 May 2018 and 6 March 2020, applying for the amnesty will result in them receiving a refund.

  • You should include this deduction in your tax return for the relevant year (if you have made payments of SGC or contributions to employee super funds in 2017-18 or 2018-19 that are eligible for income tax deductions).


Super guarantee amnesty

On 6 March 2020 the government introduced a superannuation guarantee (SG) amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), for quarter(s) starting from 1 July 1992 to 31 March 2018, without incurring the administration component ($20 per employee per quarter) or Part 7 penalty.

  • 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 by 7 September 2020.


If we identify these employers before they come forward, they will not be eligible for the benefits of the amnesty. They will also be required to pay:

  • SG shortfall

  • nominal interest (10%)

  • administration component ($20 per employee per quarter)

  • Part 7 penalty (up to 200% of the SGC).

In addition, payments of the SGC won't be tax-deductible.


MORE INFORMATION:

For the latest advice, information and resources, go to https://www.ato.gov.au/

Feel free to contact us at office@gordondu-associates.com.au or (08) 9345 0499.


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