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August 12, 2020

Last Chance to Apply for the SG Amnesty Scheme

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James Morris
Last Chance to Apply for the SG Amnesty Scheme

Get in quick – the SG amnesty has been extended to 7 September 2020.

Designed to provide employers an opportunity to correct past SG payments without incurring a non-compliance penalty, the SG Amnesty scheme has been extended.  Past the extended date in September, employers will be required to pay the SG shortfall plus a $20 fine per employee per quarter and a nominal interest payment of 10% and the Part 7 penalty (up to 200% of the SGC).  It certainly all adds up!

If identified by the ATO as having underpaid SG before applying for the scheme, businesses will not be eligible for the amnesty.

What does the amnesty do?

The amnesty allows employers to disclose and pay previously unpaid Super Guarantee Charge (SGC), including nominal interest, for the quarters commencing 1 July 1992 to 31 March 2018 without incurring the administration component ($20 per employee, per quarter) or the Part 7 penalty (up to 200% of the SGC).

It also allows employers the chance to claim a tax deduction on payments made to the ATO after 24 May 2018 and before 7 September 2020.

Who is eligible?

To be eligible, the unpaid super must be for a quarter between 1 July 1992 and 31 March 2018, it can’t have already been disclosed to the ATO and it cannot be currently under examination.

Affected by COVID-19?

The ATO acknowledges the difficult times many are experiencing due to COVID-19.

If your circumstances change after applying for the amnesty and you are unable to pay the liability, the ATO will work with you to establish a payment plan.

How do you apply?

  1. Lodge one approved SG amnesty form for each quarter by 11:59pm on 7 September 2020
  2. Complete the declaration to confirm the application
  3. Save the form as an .xls file
  4. Lodge the application using the Mail function in the Business Portal.

Once received, the ATO will notify which quarters your business is eligible for the amnesty.

How does this affect tax?

A tax deduction is available on any amnesty amounts paid before 7 September 2020. The payment reference number (PRN) is required to make a payment.

This number can be found from:

  • A super guarantee charge related statement for the same ABN
  • An ATO response to the amnesty application (received within 14 days of the ATO receiving the application)
  • A request through the Business Portal or Online Services for Agents
  • Select new message, topic: superannuation, subject: lodge SG Amnesty, state you intend to apply for the amnesty by 7 September 2020 and require a PRN for the SG employer role.

More information on the SG Amnesty Guarantee can be found on the ATO website here.

*information on this page has been taken from the ATO website and is current on date of publication.

From making the most of Government stimulus initiatives to managing the risks associated with the impact of the COVID-19, our team is here to help you build a resilient business. Contact us on 1300 888 803 to book a catch up with a Modoras professional.

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