The Superannuation Guarantee (SG) Amnesty is one of the best opportunities given to employers in a long time but unfortunately it has come at a very bad time. The SG Amnesty has given employers the opportunity to “fix up” any non payment or short fall payments of superannuation for their employees. However, time is almost up as we move quickly towards the 7th of September deadline.
The ATO is allowing employers to disclose and pay superannuation that is owed to employees without penalty of interest or Part 7 for the periods between July 1992 – March 2018.
I wrote about the SG Amnesty here but to quickly summarise the difference between paying super before September 7th and after September 7th:
- If paid before September 7th under the SG amnesty, there will be no administrative penalty. ($20/employee/quarter)
- If paid before September 7th under the SG amnesty, the super owed will be tax deductible.
- If paid before September 7th under the SG amnesty, the nominal interest paid will be tax deductible.
- If paid before September 7th under the SG amnesty, Part 7 won’t apply which is a penalty of up to 200% of the superannuation guarantee owed.
The ATO have recently announced that they will accept payment plans for employers who wish to participate in the amnesty however only payments made by September 7th will be tax deductible.
For further information, please contact our office without delay.