Super Guarantee Amnesty Important Information

Super Guarantee Amnesty Important Information
12
Mar

“For those who suspect they have underpaid, unpaid, or potentially unpaid superannuation contributions, now is the time to come forward”

On 24 February 2020, the Australian Government passed legislation that enables employers to voluntarily come forward and self-correct unpaid employee superannuation guarantee.

Many employers will remember that this legislation entered parliament in 2018. The Superannuation Guarantee Amnesty was heavily debated in the house, but ultimately the bill fell by the wayside in the lead up to the election and the reforms lapsed.

The Government has highlighted that since the one-off amnesty was announced in May 2018, more than 7000 employers have come forward to voluntarily disclose unpaid superannuation. When the legislation fell flat in 2018, many may have wondered why they self-reported.

Fortunately for those that have already reported the amnesty period covers all self-reported non-compliance of superannuation payments made from May 24, 2018 until 6 months from the date the legislation receives Royal Assent (we expect this period to run to the end of August 2020).

For those who suspect they have underpaid, unpaid, or potentially unpaid superannuation contributions, now is the time to come forward. The period of non-compliance that businesses can voluntarily claim amnesty for extends from 1 July 1992 to 31 March 2018.

Depending on how complete, accurate and up to date your payroll data is, there may be a substantial amount of work involved in preparing a claim but these next 6 months will fly by so you need to act now.

Once the deadline for amnesty passes, the maximum penalty for a business owner who has unpaid superannuation is equal to 200 percent of the superannuation owed. Unlike the amnesty provisions, the penalty along with the superannuation guarantee payment will not be tax deductible. This could have a huge impact on the cash flow and tax position of a business.

If you think you require the Superannuation Guarantee Amnesty, it’s important to contact us now. We can help to identify the amount payable, which quarter the superannuation should have been paid, as well as complete the calculations required to file for amnesty.

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