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On 6 March 2020 the government introduced a superannuation guarantee (SG) amnesty which allows employers to disclose and pay previously unpaid super guarantee charges (SGC), including nominal interest, that they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018, without incurring the administration component ($20 per employee per quarter) or Part 7 (double SGC) penalty.

In addition, payments of SGC made to the ATO after 24 May 2018 and before 11:59 PM 7 September 2020 will be tax deductible.

Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again. Employers who come forward from 6 March 2020 need to apply for the amnesty.

The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG. If they identify these employers before they come forward, they will not be eligible for the benefits of the amnesty, and they will also be required to pay:

• SG shortfall;
• nominal interest (10%);
• administration component ($20 per employee per quarter); and
• Part 7 penalty (up to 200% of the SGC).

In addition, payments of the SGC won’t be tax deductible.

The law does not allow the ATO to vary the due date for lodgment of an amnesty application (note that this includes those affected by the 2019–20 bushfires).

Eligible employers need to lodge their completed SG amnesty form with the ATO so they receive it no later than 7 September 2020.

Businesses must act decisively to take advantage of this amnesty before the deadline. As always, our knowledgeable team at Gladstone Accounting and Taxation are on call to provide any advice you require.