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Small businesses have been urged to disclose historical superannuation guarantee shortfalls ahead of the fast-approaching SG amnesty deadline.
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ASBFEO calls for SG amnesty take-up as deadline looms
28 July 2020
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With just over a month to go before the SG amnesty deadline of 7 September, the Australian Small Business and Family Enterprise Ombudsman has urged businesses to self-correct historical SG non-compliance dating from 1 July 1992 to 31 March 2018.
“Payment plans are available to small businesses unable to pay the lump sum amount owed, so long as they get on the front foot and make contact with the ATO, before the September 7 deadline,” said ASBFEO Kate Carnell.
“However, only payments made before September 7 will be eligible for the tax deduction benefit.
“To qualify for the amnesty, employers have to come forward voluntarily, without direct prompting from the ATO and agree to pay all employee entitlements plus interest.”
Despite the disruption caused by COVID-19, the government has remained silent on whether it would extend the SG amnesty deadline.
The accounting profession had previously called for the amnesty period to be extended, arguing that it has now encountered its “worst-case scenario” in coinciding with the coronavirus-induced downturn.
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A joint submission from professional bodies has since called on the ATO to extend the SG amnesty deadline by a further six months to 7 March 2021.
Ms Carnell reiterated the amnesty will give small businesses a chance to ensure they are compliant “because all Australian workers deserve to be paid the entitlements they are owed”.
“If you don’t disclose unpaid super under the amnesty and you are found to have been non-compliant, you will face a minimum penalty of 100 per cent of the superannuation owed, have to pay $20 administration fee per employee per quarter and you cannot deduct any payments made,” she said.
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