The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has reminded businesses to report any errors they may have made in super payments to staff by 7 September to avoid penalties.
The legislated SG amnesty gives a one-off amnesty to employers, offering them an opportunity to get up to date with outstanding super payments to current and past employees, without being slugged with the harsh penalties that usually apply.
This applies to the superannuation guarantee amnesty legislation passed from 1 July 1992 to 31 March 2018.
With the deadline looming, Ms Carnell has advised small business owners to speak to their trusted, accredited financial advisers now to get their affairs in order before it’s too late.
“Payment plans are available to small businesses unable to pay the lump sum amount owed, so long as they get on the front foot and make contact with the ATO, before the September 7 deadline,” she said.
“However, only payments made before September 7 will be eligible for the tax deduction benefit.”
Ms Carnell reminded that to qualify for the amnesty, employers have to come forward voluntarily, without direct prompting from the ATO and agree to pay all employee entitlements plus interest.
“Most small businesses already do the right thing, with 95 per cent complying,” she said.
“The amnesty will give small businesses a chance to ensure they are compliant because all Australian workers deserve to be paid the entitlements they are owed.
“If you don’t disclose unpaid super under the amnesty and you are found to have been non-compliant, you will face a minimum penalty of 100 per cent of the superannuation owed, have to pay $20 administration fee per employee per quarter and you cannot deduct any payments made.”
Earlier this year, the Institute of Public Accountants (IPA) applauded the arrival of the SG amnesty, having advocated for it for some time.
“The IPA has long advocated for this one-off amnesty, which allows employers to clean the slate by paying historical SG underpayments,” said IPA chief executive Andrew Conway.
Mr Conway acknowledged that small businesses can sometimes experience cash flow issues, making them vulnerable when it comes to meeting their SG obligations by the required due date.
“This amnesty gives them time to atone,” he said.
