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Recent law changes have introduced a superannuation guarantee amnesty which will be available for eligible employers who have unpaid super obligations. This means that certain penalties and fees usually charged by the government on late super will be waived for the amnesty period.

In addition, late payments made between 24 May 2018 and 7 September 2020 will be tax deductible.

The ATO has confirmed that despite the current crisis, they cannot deviate from legislation but will be looking to work with businesses who disclose to establish a payment plan to pay their liability. Note: while payment plans can be extended to beyond 7 September, the ATO advises that only payments made by the deadline will be deductible.

Employers with super owing to employees can catch up on paying superannuation to staff without the added charges, although interest on the unpaid super is still due to the employee.

The bill was put forward in 2018 and passed by government on 6 March 2020.The amnesty period is available from 7 March 2020 to 7 September 2020.

What period does the Amnesty apply to?

The amnesty allows employers to disclose and correct any superannuation owing from 1 July 1992 to 31 March 2018.

For any amounts that are unpaid since 1 April 2018, the usual penalties will apply.

Act now to catch up historical Super

To take advantage of the amnesty, employers need to voluntarily report unpaid super using the ATO superannuation guarantee amnesty form before 7 September 2020.

Calculating the unpaid super and interest payable can be a complex task. The amnesty is available for employers who voluntarily report. Do not wait for an audit.

Contact us to make the most of the amnesty period and ensure you calculate and report any unpaid super correctly.