Are you worried about unpaid staff super and potential penalties?
If the answer is yes, then the recently announced Amnesty from the tax office may be your chance to get back on track.
On 24 May 2018 the Government announced a 12 month superannuation guarantee Amnesty. The aim of this Amnesty is to encourage businesses with outstanding super guarantee [SG] obligations to voluntarily report them and avoid the penalties. The Amnesty applies to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018.
Employers who voluntarily disclose previously undeclared SG shortfalls during the Amnesty and before the commencement of an audit of their SG will:
- not be liable for the administration component and penalties that may otherwise apply to late SG payments, and
- be able to claim a deduction for catch-up payments made in the 12-month period.
Employers will still be liable to pay all of the amounts previously undeclared and any associated interest charges.
To be eligible for the Amnesty you must:
- voluntarily disclose amounts of SG shortfall within the 12-month Amnesty period – between 24 May 2018 and 23 May 2019,
- disclose amounts of SG shortfall that have not previously been disclosed, and
- not be subject to an audit of your SG for the relevant periods
Importantly, employers who are not up to date with their super guarantee obligations and who don’t come forward during the amnesty may face higher penalties in the future.
This Amnesty provides an opportunity for company directors to reduce their potential personal liability by bringing their obligations up to date. Taking action now can help minimise future penalties and the costs associated with expensive tax office audits.
If you believe that you need to take advantage of the Amnesty and require assistance or have further questions please contact DLA Partners on (07) 3863 9444 or by emailing clientservices@dlapartners.com.au
DLA Partners are known for helping business owners to grow their businesses and enjoy personal prosperity.
This information does not constitute financial or legal advice and is for general information purposes only. Please contact DLA Partners for specific advice relating to your particular circumstances.