The federal government recently introduced legislation that will provide a one-off amnesty on unpaid and late paid super guarantee amounts. This is an important opportunity for employers to use the amnesty to meet any outstanding super obligations, with minimal penalties imposed by the ATO.
What are the benefits of the amnesty?
Under the amnesty, administration charges will not be levied against employers for coming forward on outstanding super guarantee amounts. In addition, employers will be entitled to a tax deduction for the amounts, which usually would not be allowed.
This provides an opportunity for business owners to claim large tax deductions this current financial year on these additional super payments. In particular, small businesses that have been operating for a long period of time may have unmet super obligations for their employees, company directors and/or working family members.
Do you qualify for the amnesty?
To qualify for the amnesty:
- You must disclose to the ATO that there is a shortfall in super guarantee for a particular quarter for an employee;
- The quarter in which there is a shortfall must have ended at least 28 days before the start of the amnesty period (quarters ending up to 31 March 2018); and
- The ATO must not have declared an investigation into super guarantee compliance for that particular quarter.
Do you need to use the amnesty?
Any employer who does not come forward for shortfalls occurring between 1 July 1992 to 31 March 2018 will face an additional 100% penalty. This will be payable in addition to the super shortfall amount, interest charges and administration fees.
AustAsia recommends reviewing your superannuation obligations now to determine:
- Whether you’ve met your obligations; and
- Whether there is potential to maximise your own super contributions by using the amnesty.
Employers have 6 months up to the end of August 2020 to take advantage of the amnesty.
If you wish to discuss this further with us, please don’t hesitate to contact us on consulting@austasiagroup.com.
Best regards,
Simon Chesson
Director
Important information and disclaimer
This publication has been prepared by AustAsia Group including Accounting Services Pty Ltd (Registered Tax Agent No 7587 3005), AustAsia Financial Planning Pty Ltd (AFSL 229454) and AustAsia Finance Brokers Pty Ltd (Australian Credit Licence No 385068).
AustAsia Accounting Services Pty Ltd – Liability limited by a scheme approved under Professional Standards Legislation.
Any advice in this publication is general only and has not been tailored to your circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance, or other decision. Please seek personal advice before acting on this information.
Information in this publication is accurate as at the date of writing, 13 March 2020. Some of the information may have been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.
Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of AustAsia Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility, for any errors or omissions in this document.
Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
