Ombudsman reminds small ECEC businesses of super amnesty deadline 7 September

by Freya Lucas

July 29, 2020

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has reminded all small businesses, including those operating in early childhood education and care (ECEC) that they have until 7 September 2020, to declare any errors in superannuation payments to staff without facing harsh penalties.

 

To qualify for the amnesty, employers have to come forward voluntarily, without direct prompting from the ATO, and agree to pay all employee entitlements plus interest.

 

This applies to the superannuation guarantee amnesty legislation passed from 1 July 1992 to 31 March 2018, Ms Carnell said, adding that small business owners should “speak to their trusted, accredited financial advisers now to get their affairs in order before it’s too late”.

 

Payment plans are available to small businesses unable to pay the lump sum amount owed, “so long as they get on the front foot and make contact with the ATO, before the 7 September deadline,” Ms Carnell continued.

 

Only payments made before 7 September will be eligible for the tax deduction benefit.

 

The amnesty has been declared in order to “give small businesses a chance to ensure they are compliant” she added, noting most small businesses already do the right thing, with 95 per cent complying. 

 

“If you don’t disclose unpaid super under the amnesty and you are found to have been non-compliant, you will face a minimum penalty of 100 per cent of the superannuation owed, have to pay $20 administration fee per employee per quarter and you cannot deduct any payments made,” Ms Carnell concluded. 

 

Further information about the amnesty may be found on the ATO website, here

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