The SG amnesty ended earlier this week on 7 September.
Applications received after 7 September 2020
On its website, the Australian Taxation Office said businesses that didn’t apply for the SG amnesty but still have unpaid or late paid super to disclose will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).
Any SG amnesty forms received after 7 September will be treated as a standard lodgement of a Superannuation guarantee charge statement.
The ATO said it will:
- Notify the business in writing of the quarters that aren’t eligible for the amnesty
- Charge the business the administration component of $20 per employee per quarter
- Consider the circumstances of the business when deciding whether the Part 7 penalty should be remitted
- Issue a notice of amended assessment with the increased amount owing
- Work with the business through its debt processes to collect the amount outstanding
In addition, the ATO said any payments businesses make for quarters that don’t qualify for the amnesty will not be tax-deductible.
Applications received on or before 7 September 2020
For small businesses that have taken up the SG amnesty, they must pay the amount in full or enter into and adhere to a payment plan for any unpaid amounts.
The SGC amount disclosed must be paid to the ATO and not to the employees’ super funds or through a clearing.
The ATO said it acknowledged the “difficult times the community is experiencing”.
“If you are unable to pay in full, we will work with you to establish a payment plan to help you to continue making payments,” the ATO said.
“These arrangements include flexible payment terms and amounts which we will adjust if your circumstances change.”
Overpayment and tax deductions
The ATO noted that some businesses will receive a refund through their involvement in the SG amnesty.
“This may occur where we removed the administration component on SGC statements eligible for the amnesty received between 24 May 2018 and 6 March 2020, and employers have paid the total amount owing, including the administration component,” it said.
“Also, if you have made payments of SGC or contributions to employee super funds in 2017–18 or 2018–19 that are eligible for income tax deductions, you should include this deduction in your tax return for the relevant year.
“When we have amended your tax return, we will pay any refund due as soon as possible. Generally, this will be within 14 days.”