The six month amnesty for employers to catch up on unpaid Super Guarantee contributions without penalties ends on the 7th of September 2020.
The scheme allows employers with unpaid Super Guarantee liabilities for any quarter from 1 July 1992 to 31 March 2018 to voluntarily disclose the unpaid amounts without the penalties normally associated with late or unpaid super contributions.
If an employer is caught with unpaid super guarantee liabilities it would normally result in the following penalties:
- The amount of the unpaid super
- Nominal interest (10%)
- An administration charge of $20 per employee, per quarter
- A penalty of between 100% and 200% of the unpaid amount
- Penalties and payment of the super shortfall are not tax deductible
If an employer participates in the amnesty and pays all super shortfalls before the 7th of September 2020 the following needs to be paid:
- The amount of unpaid super
- Nominal Interest (10%)
Under the amnesty all penalties and administrative charges are waived and the payment of the super is tax deductible.
To be eligible applications need to be lodged by the 7th of September 2020 in the approved form and amounts payable either need to be paid in full or a payment plan needs to be set up and adhered to. Any payments under an approved payment plan made after the 7th of September will not be eligible for a tax deduction but will still be eligible for a waiver of penalties. If a payment plan is defaulted, eligibility for the amnesty is forfeited and penalties will apply.
It is important to note that the amnesty does not apply to unpaid super incurred after the 31st of March 2018. Any late payment of these amounts is subject to the normal penalties. Super Guarantee contributions are always required to be paid within 28 days after the end of the quarter or penalties apply. The ATO is now able to track late payment through Single Touch Payroll and Superstream reporting so late or non-payment is much easier for the ATO to detect than in the past.
If you need assistance to apply for the amnesty please contact us