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The Superannuation Guarantee Amnesty is Ending Soon

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In March 2020, a superannuation guarantee amnesty was announced. The deadline for applying for the amnesty is 7 September 2020 so this month we’re going to give you a quick overview.

What are Superannuation Guarantee Payments?

The super guarantee is money you pay to a complying super fund for your workers to provide for their retirement. The general rule is that if you pay an employee $450 or more (before tax) in a calendar month, you have to pay the super guarantee on top of their wages.

What is the Superannuation Guarantee Amnesty?

Basically the amnesty lets you disclose and pay any unpaid super guarantee payments that you owe your employees (for quarters starting from 1 July 1992 to 31 March 2018), without incurring the administrative component or Part 7 penalty.

What happens if I have unpaid super guarantee payments and don’t take part in the amnesty?

Thanks to more frequent reporting requirements and increased data visibility, the ATO are better able to identify employers with underpaid super guarantee payments. This means that you’re more likely to be caught out. If the ATO identifies you without you coming forward during the amnesty then you not only have to pay what you owe, but also 10% interest, the administration component and the Part 7 penalty.

Covid and the 2019/20 bushfire season have really affected my business, how can I afford to pay?

The ATO can offer a payment plan to those affected by these unprecedented events. Get in contact with them to see what they can do for you.

 

Make sure you apply for the Superannuation Guarantee Amnesty by 7 September 2020 via the ATO website. You can also check your eligibility and get more in depth info here. 

As always, if you need help getting your books in order to stay compliant and keep the ATO happy, connect with us today!