SG amnesty – the right time to do the right thing

If you haven’t paid the right amount of super guarantee (SG) to your workers (for most that is the 9.5% super), the SG amnesty is the time to come forward.

If you disclose your SG shortfalls during the amnesty, you can rectify past unpaid SG without incurring charges or penalties.

Also, as it stands at the moment, any payment of super for employees that occurs after the 28th day after the end of each quarter, is not tax deductible. So you still have a liability to pay the super, but you don’t get a tax deduction for it.  However, the SG amnesty offers you some hope.

The SG amnesty runs until 11.59pm on Monday 7 September 2020.

SG shortfalls for any quarter between 1 July 1992 and 31 March 2018 may be eligible if you have not been told by the ATO that they are examining your SG obligation for the period your disclosure relates to. That is to say, if the ATO hasn’t already contacted you about an SGC audit, then disclosure now should see you avoiding all charges and penalties.

There is no SG amnesty for shortfalls after 31 March 2018.

If you disclose your SG shortfalls and are found eligible:

  • you must pay the SG shortfall plus interest (varying rates depending upon the year),
  • any payments you make before 11.59pm on Monday 7 September 2020 are tax deductible, including payments through a payment plan.

However, you must pay your SG shortfalls (or payment instalments) to remain eligible. If you default on your payment plan, you will no longer be eligible for the amnesty.

It’s important you act on this opportunity now to get your obligations up to date. If you’re aware of any unpaid SG for the periods covered under the amnesty and choose not to come forward, the consequences will be significant. Penalties include:

  • up to 200% penalty on top of the SG owed and the interest that you owe (minimum 100% penalty),
  • administration charges ($20 per employee per quarter).

Advice
If you need advice on the tax changes, contact Noel May or Amanda Klye on
(03) 9585 7555 orenquiries@mktax.com.au

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