Employer Superannuation Guarantee Obligation Amnesty

Are you, or anyone you know, not up to date with their Employer Superannuation Guarantee Obligations?

If so, the current Amnesty Relief measures will be of benefit to you.

What is the Superannuation Guarantee Amnesty?

Over the past year the Australian Taxation Office (ATO) have been increasing their audit activity in relation to employers meeting their Superannuation Obligations.

Currently, if an employer fails to make superannuation payments on time or pays the incorrect amount for any of their employees the ATO can impose severe penalties of up to 200% of the total amount that was not paid or paid late. This 200% penalty is in addition to any shortfall interest charged by the ATO.

The amnesty allows a temporary relief by reducing the penalty to Nil for employers who choose to disclose and pay any previous superannuation shortfall amounts (including payments that were made late), for the period from 1 July 1992 to 31 March 2018.

What are my Obligations?

Currently, as an employer, you must ensure you pay your quarterly superannuation by the 28th of the following month. For example, the March quarter super will be due on the 28th of April.

Failure to make payment by the 28th will result in non-compliance and you will need to lodge a Superannuation Guarantee Charge (SGC) form with the ATO. This form is essentially you making a voluntary disclosure to the ATO, informing them of your non-compliance. This can result in a reduction in penalties.

How do I take advantage of the Amnesty?

If you would like to participate in the amnesty, the law requires you to apply by 7 September 2020. Please contact Rawson Verco Need to discuss how we can ensure you have met your Superannuation obligations and discuss the appropriate course of action if the obligations have not been met.

What happens the if I don’t use the Amnesty?

The penalties for non-compliance are purposely severe to encourage strict compliance and are calculated based on the time you physically lodge the SGC form and not the time you make payment.

The minimum penalty the ATO will impose will be 100% but will still have the option of imposing the full 200% penalty.

For example: if the ATO performs a review, finds you missed (or paid late) a superannuation payment, didn’t lodge the SGC form and the payment was $10,000, you will be required to pay the $10,000 + a penalty of $20,000 = $30,000 + interest. This total payment will also be NON-DEDUCTIBLE in your tax return.

This may not be applicable to your circumstances at present, however, please feel free to share this with any family, friends or colleagues.