Earlier this year, the Federal Government announced the Super Guarantee Amnesty. The amnesty allows employers to disclose and pay any previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employees, for quarters commencing from 1 July 1992 up to and including 31 March 2018.
Those employers who disclose their outstanding obligations and take advantage of the amnesty will not be liable for administration fees or penalties, however will need to pay interest on overdue amounts. This could represent a significant saving.
Amounts declared under the amnesty do not need to be paid in full upfront. The ATO have indicated that they are willing to work with businesses to negotiate a flexible payment plan that takes into account the impacts of COVID-19. Payments made prior to 7 September 2020 will be fully tax deductible.
Businesses only have until 7 September 2020 to apply for the amnesty.
Some issues for businesses to consider, include:
- Only payments made prior to 7 September 2020 will be tax deductible. Payments made after this time under a payment arrangement will avoid additional penalties, however will not be tax deductible.
- If you default on a payment arrangement under this amnesty you will lose the protections of the amnesty and be liable for the additional fees and penalties.
- Periods from the quarters ended 30 June 2018 onwards are not covered by the amnesty.
More information can be found on the ATO website: click here
If you wish to discuss the Super Guarantee Amnesty further, please do not hesitate to contact one of our team on 07 4052 0800.