SUPERANNUATION GUARANTEE AMNESTY BILL PASSED BY PARLIAMENT
Superannuation guarantee amnesty bill
passed Parliament on 24 February 2020 and has now received Royal Assent and is
law.
This law change provides a number of
incentives for employers to pay any unpaid historical superannuation guarantee
(SG) amounts relating to the period 1 July 1992 to 31 March 2018.
Superannuation guarantee amnesty
benefits
Provided superannuation guarantee
charge (SGC) relating to the period above is paid during the amnesty period of
24 May 2018 until 6 months after the date of Royal Assent (6 September 2020),
eligible employers will receive the following benefits:
- The SGC will be deductible
The SGC, which is usually non-deductible, is comprised of the following amounts:
Ø The total SG
shortfall – that is, the total of the SG shortfalls for each affected employee.
Ø Interest on SG
shortfalls – currently 10% per annum on each individual SG shortfall; and
Ø An administration
fee – usually $20 per employee, per quarter (but note point 2 below).
- The administration fee component of the SGC
will be waived.
- No penalties will be applied for failing to
lodge an SGC statement.
In usual circumstances this penalty
can be up to 200% of the SGC amount. A further incentive is that if any SG
shortfall relating to the period between 1 July 1992 and 31 March 2018 is not
disclosed during the amnesty period (24 May 2018 until 6 months after the date
of Royal Assent) and this is subsequently uncovered by the Australian Taxation
Office, a minimum penalty of 100% of the SGC will apply.
Contact Expert Tax on 0449 952 855 or 1300 869 829 for further assistance
on business and personal tax-related matters.
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