If you don’t pay an employee’s super fund by the due date, you may be liable for the super guarantee charge (SGC), even if you make the payment later.
As stated by the ATO, the SGC is made up of super guarantee (SG) shortfall amounts including any choice liability calculated on your employee’s salary, interest on those amounts which is currently at 10%, and an administration fee of $20 per employee, per quarter.
The good news is there is legislation that is currently before the Senate that will allow business owners to willingly disclose where they have short paid super funds. The ATO are actively promoting for business owners to take advantage of this opportunity to self-correct previous SG non-compliance without penalty.
Called the Superannuation Guarantee Amnesty, it is intended to be available for 12 months from 24 May 2018 to 23 May 2019. If enacted, business owners will be entitled to the benefits of the amnesty for any SG shortfalls that they have voluntarily disclosed to the ATO.
Who will be eligible?
To be eligible for the proposed Superannuation Guarantee Amnesty, any voluntary disclosure should be made prior to the start of an ATO audit. If you have unpaid employee super funds between 1 July 1992 to 31 March 2018, you will not be liable to penalties and the administration fee. Furthermore, you will be able to claim a deduction for catch up payments made before the 23 May 2019 end date.
Superannuation Guarantee Amnesty penalty
Businesses who are not up to date with their super fund payment responsibilities to their workers and who don’t step forward throughout the proposed SG amnesty may be penalised up to 100% of the SGC.
Should you have any questions or want to discuss your eligibility for this concession, please click here to contact a Chan & Naylor tax accountant near you and we’ll be glad to assist.
Aside from tax concession assistance, have a look at our other accounting and advisory services that we do to help you achieve greater financial success.
Chan & Naylor Group has national offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with tax concessions as well as getting the most out of your super fund. Contact us today.