Time is running out for employers to apply for the superannuation guarantee (SG) amnesty and catch up on past unpaid super, without incurring a penalty or paying administration fees.
To participate in the amnesty, the ATO must receive applications by 11.59pm local time, on 7 September 2020. Once applications are received, the ATO will advise which quarters are eligible for the amnesty.
To be eligible for the amnesty:
- the unpaid super must be for a quarter between 1 July 1992 and 31 March 2018
- the shortfall cannot have already been disclosed to the ATO
- the ATO cannot already be examining the shortfall.
If an employer cannot pay in full, the ATO can work with them to set up a flexible payment plan to ensure they continue qualifying for the benefits of the amnesty.
Benefits of the amnesty
If you qualify for the amnesty, you:
- will be able to claim a tax deduction for the SGC amounts you pay to the ATO by 7 September 2020
- won’t be required to pay the administration component ($20 per employee per quarter) of the super guarantee charge (SGC)
- won’t have a Part 7 penalty applied.