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SMEs warned to follow through on SG amnesty or risk penalties

Businesses have been warned by the Australian Taxation Office to follow through on paying disclosed amounts of unpaid super to its employees or face disqualification from the super guarantee amnesty and face financial penalties.

SMEs warned to follow through on SG amnesty or risk penalties
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  • Adrian Flores
  • January 19, 2021
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In a recent notice, the ATO reminded businesses that disclosed unpaid super and qualified for the SG amnesty that they must either pay in full any outstanding amounts they owe or set up a payment plan and meet each ongoing instalment amount.

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

For businesses setting up a payment plan, their tax agent can use the ATO’s online portal if the business has an existing debit amount under $100,000 (total balance or overdue amounts), does not already have a payment plan for that debit amount, and has not defaulted on a payment plan for the relevant account more than twice in the past two years.

Qualified businesses must meet each ongoing instalment of the payment plan to continue to qualify for the amnesty, the ATO said. 

Businesses that are disqualified from the amnesty will be notified in writing of the quarter they are disqualified for, and be charged an administration component of $20 per employee for each disqualified quarter.

Further, they will have their circumstances considered when deciding a Part 7 penalty remission and be issued with a notice of amended assessment.

“We are sending reminders to your clients who made amnesty disclosures to pay their disclosed amounts if they have not previously engaged with us,” the ATO said on its website.

“Your eligible clients will have 21 days to avoid being disqualified from the amnesty.”

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