Due to the economic impacts of COVID-19, a Superannuation Guarantee Amnesty has been introduced to provide a one-off opportunity for employers to pay superannuation payments that are owed – penalty free!
Do You Need to Apply for the Superannuation Guarantee Amnesty?
On 6 March 2020, the government introduced a super guarantee (SG) amnesty that allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employees, for any quarter starting from 1 July 1992 to 31 March 2018.
If your business has correctly paid the amount of superannuation for your employees during this period, you do not need to apply for the Superannuation Guarantee Amnesty.
If however, you are concerned that your business has not paid your past or present employees the correct amount of superannuation, your business may wish to participate in this one-off opportunity (the Amnesty) by applying by the 7th of September. The Amnesty will provide your business with an opportunity to catch up on any unpaid superannuation.
Will You Need to Pay Any Penalties or Administration Fees?
If you are eligible for the Superannuation Guarantee Amnesty, then you will NOT be required to pay any penalty fees or administration fees.
You will also be eligible to claim a deduction for any payments made before the 7th of September 2020.
ATO Payment Plan Options
The ATO can work closely with you to set up a payment plan, which will allow you to continue making superannuation payments to your employees. The payment plan is both flexible and adjustable, depending on the dynamic nature of your financial circumstances. You will also be able to extend the payment plan past the end of the amnesty period – the 7th of September 2020. Please note that only payments made prior to the 7th of September will be eligible for deduction.
Eligibility for the Superannuation Guarantee Amnesty
To receive the Superannuation Guarantee Amnesty, you must meet a set eligibility criteria. Click here to review the criteria as outlined by the ATO.
To be eligible for the Superannuation Guarantee Amnesty, you must apply by the 7th of September 2020.
How to Apply
You are required to apply for this by the 7th of September, 2020. For detailed instructions on how to apply, visit the ATO by clicking here. Our team at Allan Hall Business Advisors can also assist your business with the application process. If you wish to speak with a trusted advisor, please click here.
For more detailed information regarding the Amnesty please click here.
We have been assisting many businesses with their superannuation payments. Our team at Allan Hall Business Advisors can assist you to navigate this process smoothly and efficiently. Please do not hesitate to contact us should you require assistance or have any further questions.