WA businesses are being urged to urgently review their superannuation obligations ahead of the super amnesty deadline on September 7.
At the end of the amnesty period, which applies to unpaid super between 1992 to March 2018, the Australian Tax Office (ATO) will undertake substantial audit activity.
Businesses with unpaid super obligations for employees need to lodge the required documentation with the ATO during the amnesty period.
Director of Perth accounting and taxation firm M2 Corporate Mace Turco explains that the super amnesty was designed to help business rectify late or incomplete super payments.
“This one-off opportunity allowed employers to disclose, lodge and pay unpaid SG amounts for their employees without attracting the usual nontax deductible penalties and administration fees,” he says.
Businesses that do not disclose and correct their super guarantee obligations before September 7 will not have the benefit of the super amnesty, Turco continues.
This means that in the situation where a business is audited, and SG has been paid late or paid, the business will be exposed to administrative charges, penalties, and interest payments.
Additionally, the business will not be able to claim a tax deduction for the Superannuation Guarantee Charge paid.
“We urge all business owners to reach out to their accountants to ensure that they have been previously compliant with their superannuation guarantee payments,” Turco adds.
“If you need to correct the SG payments it is extremely important that you take advantage of the Super Amnesty and complete the SG Amnesty Form.
“It is also important to note that employers can set up a payment plan for the unpaid SG amounts.”