The deadline for lodgement of forms for the government’s super guarantee (SG) amnesty is September 7.
The amnesty, which commenced on March 6 this year, offers favourable terms to eligible employers who disclose SG payment shortfall to the ATO by the deadline.
It is an opportunity for employers to do the right thing, paving the way to rectify non-compliance with their superannuation guarantee obligations and also ensure payroll is configured correctly going forward.
The benefits of the amnesty afforded to employers who qualify include:
- Ability to claim a tax deduction for the SGC amounts you pay to the ATO by 7 September 2020
- No charge of administration component ($20 per employee per quarter) of the SGC
- No Part 7 penalty
The ATO states that “If you have already been assessed for a quarter, you can amend a previously disclosed SG shortfall. However, only newly-disclosed, additional amounts will be considered for the benefits of the amnesty.
“Your professional adviser can provide further advice on participating in the amnesty, based upon your particular circumstances.”
BDO Business Services Partner Steve Fimmano says organisations need to think and act quickly if they wish to avoid potential penalties.
“This is a rare, but very welcome, opportunity for employers to take stock of any potential errors and correct them with minimal negative impact,” he said.
“Not only will their business processes ultimately be better for it, but they can rest easy knowing they’ve done the right thing by their employees.”
The September 7 deadline stands firm, despite the ongoing economic disruption brought on by COVID-19.
However, the ATO has said payment plans can be set up for disclosures made within the amnesty period – a welcome boost in times of difficult cash flow.
But only contributions paid before September 7 will be tax deductible if a payment plan is approved.
In this economic climate, it stops businesses wasting cash on admin charges and penalties and provides a welcome opportunity for tax deductions.
If you’re unsure where to start, BDO has prepared a checklist to help you consider your SG liability and whether the SG amnesty is applicable to your organisation.
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