What is the super guarantee amnesty and how will it help my business?

If you’re a business owner, you’ve probably heard about the Australian Government’s super guarantee amnesty. The super guarantee amnesty was introduced on 6 March 2020 but employers participating in the amnesty need to apply by 7 September2020.

The amnesty allows business owners a one-off opportunity to correct past unpaid super guarantee amounts. Employers can claim deductions and avoid administration charges or penalties during the amnesty.

How does the super guarantee amnesty affect my business?

The super guarantee amnesty allows employers to disclose and pay any previously unpaid super guarantee charge (SGC), including nominal interest, they may owe their employees from the period 1 July 1992 and 31 March 2018.

Eligible disclosures will not incur the administration component ($20 per employee per quarter) or Part 7 penalty (the maximum penalty is 200% of the SGC).

In addition, payments of SGC made to the ATO before 11.59pm on 7 September 2020 will be tax deductible.

Business owners who choose to not come forward during the amnesty will incur significant financial penalties. The ATO will continue to conduct reviews and audits to identify employers not paying their employees’ super guarantee.

How do I apply for the super guarantee amnesty?

To apply for the super guarantee, you must lodge one amnesty form for each quarter before the cut-off date. You can download the form here. You must also:

• check amounts are correct and there are no errors on the forms
• complete the declaration to confirm you are applying for the amnesty
• save the form as an .xls file.

What are the benefits of the super guarantee amnesty?

Aside from the extended payment period, the benefits of applying for the super guarantee amnesty include:

• a tax deduction on any SGC payments made to the ATO before 7 September 2020
• avoid the penalties and administrative fees which are usually applied to late and incorrect payments
• payment plans can be arranged with the ATO.

The super guarantee amnesty is a golden opportunity for business owners who may have incorrectly paid past or present employee super entitlements to rectify their error.

To learn more about the super guarantee amnesty, head to the ATO website.

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If you’re a business owner who needs help applying for the super guarantee amnesty before the closing date, get in touch with Hillier’s Advisors. We’re experts in superannuation and taxation and can assist you to complete your application