SG Amnesty Ends Soon – Reminder for Employers
Time is running out for employers to take up the Government’s superannuation guarantee (‘SG’) amnesty, which expires at 11:59pm on 7 September 2020.
The amnesty allows eligible employers to disclose and pay SG charge (‘SGC’) amounts owing from 1 July 1992 to 31 March 2018, without incurring penalties (up to 200% of the SGC) or administration fees ($20 per employee, per quarter) that would otherwise apply.
SGC payments made during the amnesty period (i.e., 24 May 2018 to 7 September 2020) are tax deductible.
To participate in the amnesty, applications must be received by the ATO by 11:59pm on 7 September.
Even if employers are unable to pay the amount owing, the ATO has advised it will work with employers to establish a payment plan tailored to their circumstances. Employers with unpaid SGC amounts that do not come forward during the amnesty period risk significant penalties applying (including a minimum of 100% of the unpaid SGC) if later discovered by the ATO. Importantly, frequent reporting by super funds and employers has increased the ATO’s ability to identify employers with underpaid SG amounts.
For more details, refer to the ATO document, SG amnesty ends 7 September 2020