The long awaited superannuation guarantee amnesty is now law. If you are an employer with outstanding superannuation payments prior to 31 March 2018, you need to act quickly to take advantage of these measures.
The benefits of the amnesty are as follows:
- The Superannuation Guarantee Charge will be tax deductible
The SGC, which is usually non-deductible, is comprised of the following amounts:
- the total SG shortfall – that is, the total of the superannuation shortfalls for each affected employee;
- interest on SG shortfalls – currently 10% per annum on each individual SG shortfall; and
- an administration fee – usually $20 per employee, per quarter (but note point 2 below).
- The administration fee component of the SGC will be waived.
- No penalties will be applied for failing to lodge an SGC statement.
In usual circumstances this penalty can be up to 200% of the SGC amount. A further incentive is that if any SG shortfall relating to the period between 1 July 1992 and 31 March 2018 is not disclosed during the amnesty period (24 May 2018 until 6 months after the date of Royal Assent) and this is subsequently uncovered by the Australian Taxation Office, a minimum penalty of 100% of the SGC will apply.
You must lodge and pay the outstanding amounts by 6 September 2020 to be eligible for the amnesty.
If you would like to lodge an amnesty application, contact Kennedy Barnden on (02) 4365 6789.