Taking advantage of the SG amnesty, for some employers, has one more hurdle

At the time when the superannuation guarantee amnesty measure ran its course (it expired 7 September 2020), the Assistant Minister for Superannuation Jane Hume reported the amnesty resulted in 24,000 employers coming forward, with about $588 billion paid into nearly 400,000 accounts.

Your eligible clients who qualified for the amnesty by disclosing unpaid SG before the deadline, however, are in danger of being disqualified should certain steps not be taken.

The ATO says such clients must either:

  • pay in full any outstanding amounts they owe
  • set up a payment plan and meet each ongoing instalment amount.

The ATO says it will send reminders to those clients who made amnesty disclosures to pay their disclosed amounts if they have not previously engaged with it. Your eligible clients will have 21 days to avoid being disqualified from the amnesty.

If your client needs to set up a payment plan, you can use Online services for agents if your client:

  • has an existing debit amount under $100,000 (total balance or overdue amounts)
  • does not already have a payment plan for that debit amount
  • has not defaulted on a payment plan for the relevant account more than twice in the past two years.

If you are unable to set-up a payment plan via Online services for agents, the ATO says practitioners and/or taxpayers should make contact so the ATO can work with you or your client to find the right solution.

Your client must meet each ongoing instalment of the payment plan to continue to qualify for the amnesty.

Your clients who are disqualified from the amnesty, will:

  • be notified in writing of the quarter they are disqualified for
  • be charged an administration component of $20 per employee for each disqualified quarter
  • have their circumstances considered when deciding a Part 7 penalty remission
  • be issued with a notice of amended assessment.

Your clients who have and continue to qualify for the SG amnesty can only claim a tax deduction for amounts paid on or before 7 September 2020.

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