After much waiting and anticipation…. the superannuation amnesty has finally received the green light.
So what does it mean?
The amnesty creates an opportunity for employers to make a catch up payment of ‘old superannuation’ that should have paid for employees (and directors)… the ATO will allow the payment to be deductible* (super is normally only deductible if paid by the due date) along with reducing fines and penalties that would normally be applicable.
Further, the What period does the Amnesty Cover?
The amnesty applies for any quarter between 1 July 1992 and 31 March 2018.
How to apply for the amnesty?
To apply to access the amnesty an employer must self report super guarantee non-compliance to the ATO before 7 September 2020, using the ATO approved form.
Why should you seriously consider the amnesty?
Further, the ATO’s data visibility is strengthening as a result of more frequent reporting requirements by super funds and employers; increasing the ATO’s capability to identify employers who have unpaid superannuation. The ATO has made it very clear that once the amnesty period is over; steep fines and penalties will be issued in the event of unpaid super.
Lastly, the amnesty creates an opportunity for superannuation payments to be deducible; allowing an opportunity to reduce tax before 30 June 2020.
*only deductible if paid before 7 September 2020.