Traditionally if you were an employer that was late in paying your employees super you were required to complete a Superannuation Guarantee Charge (SGC) Statement for each quarter and lodge this with the ATO. Superannuation that was paid late lost its tax deductibility. Furthermore, you were charged nominal interest to compensate your employees for loss of earnings on their late superannuation and you were also charged an administration fee payable for late quarter.
The Federal Government then issued Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2018.
In summary the proposed Superannuation Guarantee Amnesty encourages employers to voluntarily disclose their historical non-compliance with their superannuation obligations.
They encourage employers to disclose their late superannuation by way of the following:
- The amnesty is intended to be available for 12 months from 24 May 2018 to 23 May 2019;
- The amnesty will not be available if you are subject to a super guarantee audit from the ATO;
- You are able to claim a tax deduction for all late superannuation paid during the 12 month amnesty period;
- All other penalties and fees relating to the late super will be reduced to Nil.
It is strongly recommended that taxpayers take up this one off opportunity rather than waiting to be audited by the ATO, as stricter penalties will apply in the future.
If you would like to discuss further please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com
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