This is an urgent reminder for all employers that the Super Guarantee Amnesty ends on 7 September 2020. Now is the last opportunity you will have to catch up on any unpaid super without increased significant penalties applying.
If you have paid the right amount of super for your employees, you don't need to do anything further. If you are concerned about whether or not you have, or are aware that you have not complied you must rectify immediately and self disclose prior to 7 September 2020..
If you are worried you have not paid all your employees their super, you should talk to a tax professional to review your obligations or visit our website to learn more about the Amnesty before it ends.
What you need to do
The amnesty provides employers with a heavy incentive to disclose and rectify accordingly, any historic non-compliance with their superannuation guarantee (SG) obligations. Now is the time for employers to urgently complete review of their historic SG compliance and not miss the window in which the amnesty will be applied.
If you are eligible for the Amnesty you can pay the previously unpaid super and you will not have to pay any penalties or administration fees. You will also be able to claim a deduction for any payments you make before 7 September 2020.
The Amnesty came into effect on 6 March 2020 and it's fair to say that we are living in a very different economic climate now due to the impact of COVID-19. Many businesses will be concerned that they are not currently able to pay the amount owing. If this is the case, you must still apply for the Amnesty to receive its benefits and avoid penalty. The ATO can work with you to establish a payment plan tailored to your circumstances and extend beyond 7 September 2020 when the Amnesty ends. It is important however that you prioritise your payment obligations for any plan that is put in place as if these requirements are not met, you will be disqualified from the Amnesty and lose the benefits. In these circumstances however, the penalties may possibly be waived after a further review of your circumstances.
To be eligible for the Amnesty the ATO must receive your application by 7 September 2020. If you need further information, please talk to your tax professional or visit ato.gov.au/SGAmnestyLegislation.
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The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.