The bill to allow an amnesty on late or unpaid superannuation contributions has now received royal assent as of 6 March 2020. This will allow employers to voluntarily disclose to the ATO late or unpaid amounts. The amnesty will apply for six months after date of royal assent and can be used for superannuation contributions in respect of all quarters ending 31 March 2018.
Employers will need to complete and lodge a superannuation guarantee charge (SGC) statement with the ATO under the amnesty, but will not have to pay an administration fee of $20 per employee for each statement lodged. Employers will be able to avoid penalties that can apply to an SGC liability, and can claim a deduction for income tax purposes for SGC amounts paid in accordance with the amnesty.
Avoiding SGC Problems
We remind employers that although the superannuation amnesty is helpful, it is much better to avoid being in a situation where this needs to be utilised by paying employee superannuation contributions on time.
Superannuation contributions are required to be paid to a superannuation fund by the 28th day after the end of the March, June, September and December quarters. For example, superannuation contributions payable for March 2020 need to be paid by the 28th of April. If they are not paid by this date then they are not deductible for income tax purposes and an SGC statement must be completed.
To ensure that you comply with your employer obligations we generally recommend that superannuation contributions be paid on a monthly basis by the middle of the month, and well before the above quarterly due dates. Additionally, superannuation contributions should also be paid well before 30 June to ensure they are deductible in the year that they relate to.
As explained in our previous article on superannuation (which you can access here: http://www.sawarddawson.com.au/business/articles/super-payments-no-margi...), the ATO is now matching payroll information reported via Single Touch Payroll to superannuation contributions paid via SuperStream, and using this data to identify late superannuation contributions. Employers are then being advised that they must lodge an SGC statement with the ATO and pay an SGC liability.
Please contact us if you require assistance with your superannuation responsibilities or employer obligations.