Why is this important?
The Super Guarantee (SG) is the regular compulsory employer contribution to its employees’ super funds – a minimum of 9.5% earnings for most employees. The Super Guarantee Charge (SGC) is the penalty imposed by the Tax Office if the correct super isn’t paid on time
When superannuation (SG) is underpaid for employees, employers are also required to pay:
- Superannuation shortfall
- nominal interest (10%)
- administration component ($20 per employee per quarter)
- Part 7 penalty (up to 200% of the SGC)
- Payments of the SGC won’t be tax deductible.
What is the amnesty?
The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018.
Eligible disclosures will not incur the administration component ($20 per employee per quarter) or Part 7 penalty.
In addition, payments of SGC made to the ATO after 24 May 2018 and before 11.59pm on 7 September 2020 will be tax deductible.
Employers need to apply for the amnesty by 7 September 2020
Eligibility for the amnesty
To be eligible for the amnesty you must meet and fulfil all the following criteria. You must:
- have not been informed the ATO is examining or intends to examine your SG obligation for the quarter(s) your disclosure relates to
- disclose an SG shortfall for an employee that you haven’t already disclosed to us (or disclose additional amounts of SG shortfall for a quarter previously disclosed)
- disclose for quarter(s) starting from 1 July 1992 to 31 March 2018
- lodge your completed SG amnesty form with the ATO so we receive it no later than 7 September 2020.
How to apply for the amnesty
To apply for the amnesty
- download the approved SG amnesty form from the tax office
- complete one form per quarter
- complete the declaration confirming you are applying for the amnesty
- lodge the completed forms by 7 September 2020
You will be informed within 14 business days of you eligibility
We understand that being a business owner means you are incredibly busy doing all the roles necessary for your business, including: marketing, sales, bookkeeping, client happiness, staff happiness & a host of other things.
For clients: your team are here to answer your questions about the SGC amnesty
Not a client: Book in for a 10min chat with me about your questions & how we can support you
Julie Cohen 08 9344 7799
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This information is intended to provide general information only and has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information