Now is the time to take advantage of the Super Guarantee Amnesty .The SGC Amnesty finishes soon on 7th September.
A number of our clients have already taken advantage of the amnesty. As a result many of our small business clients have entered into repayment plans for repayment of this debt.
The SGC Amnesty allows employer businesses a one-off opportunity to self-correct historical Superannuation Guarantee non payment and lodgements.
For a detailed understanding of what SGC is, we refer to the ATO website
- The SGC Amnesty extends to non-payment superannuation payments for the periods between 1st July 1992 to 31st March 2018.
- The super guarantee amnesty started on 6 March 2020. Employers participating in the amnesty need to apply by 7 September 2020. Beyond this an employer will not be able to benefit from the Amnesty for SG shortfall
How does the Amnesty work!
The SGC Amnesty allows employers to claim tax deductions for payments of SG charge or contributions
The amnesty will also as remove the administrative and the Part 7 penalty. This penalty may generally apply in relation to any SG non-compliance made during that period .
If you don’t come forward
By taking advantage of the Superannuation Guarantee Amnesty will still required you to meet all amounts owing to their employees. However, the Government hopes it will enable Employers to catch up . Thereby they continue to meet their obligations into the future.
Penalties will apply after the amnesty date.
There are great reasons why Employers should take advantage of the Amnesty. If you chose not to, your business will be subject to higher penalties. The penalties will apply if caught once the amnesty period has expired.
During the amnesty period, the ATO will still continue its usual audit and enforcement activity . The ATO has suggested that it recommends all employers check that they met all their SGC obligations during this time. Letters have been sent to employers advising of the end of the amnesty is soon approaching.
The good news for an employer who makes a voluntary disclosure under the Amnesty. They will not be required to pay the administration component of $20 per employee per quarter. This will apply in respect of SGC shortfalls for employees who are nominated in that disclosure.
It also means that a Part 7 penalty will also not apply. Resulting in the penalty not to being applied to catch-up SGC payments made during the Amnesty period.
Why take advantage of this Amnesty?
Catch-up SGC payments will be deductible which is a significant advantage as under normal circumstances they are not.
We encourage those taxpayers to take advantage of this opportunity. Moving forward the ATO can track employer obligations a lot easier using STP.
The ATO imposing more significant penalties if caught post the amnesty period. Don’t use the lack of cash flow as the excuse not to act . We can negotiate on your behalf a suitable repayment plan. It may mean the payments may not be deductible, but fines will not be imposed