MAP - March 2020 Update
Superannuation Amnesty finally gets the green light
- The amnesty will finish six months after the Bill receives Royal Assent
- Employers must self report during the amnesty period
- Higher penalties will apply once the amnesty period ends
On the 24 February 2020, Parliament passed the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019. The Bill is awaiting Royal Assent.
What is the Amnesty?
Ordinarily employers owe Superannuation Guarantee (SG) contributions for their employees 28 days after the end of each quarter. The amnesty applies for any quarter between 1 July 1992 and 31 March 2018 in which there is unpaid super.
How does it work?
Employers can access the amnesty be voluntarily self reporting to the ATO any SG non-compliance between 26 May 2018 and late August/early September 2020 (exact date will be 6 months after the legislation receives Royal Assent). The self reporting will be done on an ‘approved form’ which will be available on the ATO website shortly after the Bill becomes law.
Will I be eligible?
Employers will be eligible, if at the time they apply to use the amnesty they have not already been informed by the ATO that a SG review or audit is to be conducted.
What are the benefits?
Apart from bringing any unpaid super contributions up to date, doing so during the amnesty period will result in significantly less penalties, and these costs will be tax deductible. The normal late super penalties are extremely harsh and are not tax deductible.
Should I consider it?
Definitely, yes. In our opinion, it’s the Government’s way of saying you have a once-off opportunity to deal with any unpaid super before tougher penalties apply. If you would like any assistance please feel free to give our office a call.
Insurance payouts and Government assistance payments
With the recent bush fires, floods and other natural disasters, it is important to consider the tax implications of receiving these payments. Insurance payouts for damaged or destroyed personal items are not taxed. However payouts for businesses and other income producing assets may be taxed. Further details can be found here.
Most one-off disaster assistance payments are tax-free. You are not required to pay tax on any relief recovery payments or benefits provided by the Australian Government in relation to the 2019-20 bushfires. As there are many forms of assistance and payments, it is worthwhile to check with us. More details are available here.
Important dates this month:
21 March: Lodge and pay February 2020 monthly Business Activity Statement
31 March: Fringe Benefits Tax (FBT) year ends. We will be in contact with you shortly to discuss your FBT liability and the preparation of the annual return for 2020. However, should you have any FBT related queries, please call us.