The SG amnesty is set to end on 7 September 2020, after which penalties or paying administration fees will apply.
To be eligible for the amnesty, unpaid super must be for a quarter between 1 July 1992 and 31 March 2018, businesses can’t have already disclosed the shortfall to the ATO, and the ATO can’t be examining the shortfall.
Businesses must also either pay in full or set up a payment plan to continue qualifying for the benefits of the amnesty.
The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, said small businesses should 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,” Ms Carnell said.
“However, only payments made before September 7 will be eligible for the tax deduction benefit.
“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.”
Ms Carnell said 95 per cent of small businesses are complying with their superannuation obligations to their employees and are doing the right thing.
“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,” she said.
“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.”