Are you a business with Super Guarantee (SG) liabilities?

Introduced on 6 March 2020, the Australian Tax Office’s Super Guarantee Amnesty lets business owners disclose and pay previously unpaid super guarantee charges (SGC), including nominal interest, they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018, without incurring super guarantee charges (SGC) or penalties.

The super guarantee charges can be substantial:

  • There is an administration fee of $20 per employee, per quarter
  • If you were late submitting your SGC statement, or failed to do so, you will be liable for the Part 7 penalty – the minimum penalty is 100% of the SGC and the maximum is 200%!
  • You will pay nominal interest (10%)
  • A general interest charge (GIC) will also be applied
  • Employers will be unable to claim a tax deduction for the SGC paid
  • You will also have to pay the outstanding Super Guarantee

The ATO has given a good example of a small business that failed to take the Super Guarantee  Amnesty. Following an audit by the ATO, a salon owner discovered they had a SG shortfall and the total super guarantee charges (SGC) payable was $12,800. This includes the shortfall, the interest and administration charge. However, because he didn’t disclose it within the amnesty period, he now owes the ATO $25,600, due to the Part 7 penalty, and he cannot claim a tax deduction for this. You can read it in full here

If you have already disclosed any unpaid SGC to the ATO between 24 May 2018 and 6 March 2020, you don’t need to apply or lodge again.

The deadline for applications closes today (Monday, 7 September 2020) at 11.59pm.

To avoid the penalties detailed above, you must apply to the ATO here.

If you have any questions, please do not hesitate to contact us and we will do our best to assist you within the timeframe. Call us on 08 9240 7629 or email admin@taxproaustralia.com.au

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