Until 7 September 2020, employers with unpaid compulsory superannuation between 1 July 1992 and 1 January 2018 are able to self-correct underpayments without incurring additional penalties.
Importantly, employers are able to claim a tax deduction during the amnesty for payment of superannuation guarantee charge and contributions. Ordinarily late payment of compulsory superannuation contributions / super guarantee charge is non-deductible!
The amnesty is available to employers who first disclose super guarantee shortfall in the approved ATO form between 24 May 2018 and 7 September 2020.
After the amnesty ends the ATO is set to be tougher on employers who fail to satisfy their compulsory superannuation obligations including late and under payments.
Note, employers need to pay superannuation guarantee to an employee’s chosen superannuation fund at least each quarter as follows:
Jan-March quarter – 28 April
Apr-June quarter – 28 July
Jul-September quarter – 28 October
Oct-Dec quarter – 28 January
To read other April 2020 Client Alerts, click here.