Super Guarantee Amnesty
23 May 2020
Amidst everything that has been happening in Australia since COVID-19, the Super Guarantee Amnesty finally came into effect with The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 receiving Royal Assent.
The amnesty provides employers with an opportunity to self-correct historical superannuation guarantee (SG) non-compliance, without incurring the administration component or penalties. The amnesty period applies from the 24th May 2018 to 7 September 2020.
Ordinarily, where an employer fails to pay an employee’s super on time, the employer will be required to lodge a Super Guarantee Charge (SGC) statement and pay the SG charge on any SG shortfall amounts.
The SGC is made up of:
- SG shortfall amounts;
- Interest on those amounts;
- An administration fee of $20 per employee per quarter.
Additionally, if any employer lodges their SCG statement late, they are also liable for a “Part 7” penalty. This penalty is paid on top of the SGC that employers owe, with the maximum penalty being 200% of the SCG amount. The Commissioner of Taxation currently has the power to remit all or part of the penalty payable.
No part of the SCG payment or penalties is tax deductible.
ATO texts to update bank details
1 November 2018
From 5 to 23 November 2018, the ATO will be sending SMS text messages to individuals and businesses entitled to a refund who have provided incorrect bank account details in their tax return. You will receive a text directly from the ATO if a refund bounce occurs.
Many people are understandably wary about text messages and emails requesting bank details, considering the number of hoaxes and scams that abound these days.
It is important to be aware that ATO texts during this period are not a hoax and updating your bank details will ensure you receive your refund. BUT be warned, scammers are likely to impersonate the same SMS so you will need to carefully check the text for legitimacy.
2018-19 Federal Budget – Planning for a stronger economy
10 May 2018
On Tuesday the 8th May, the Federal Treasurer, the Hon, Scott Morrison handed down the Coalition Government's national budget for the 2018-19 Financial Year. Overall the stated focus of this budget is "sticking to our plan for a stronger economy". This is a budget preceding an election so a number of measures within this budget are designed to improve the Turnbull Government standing with voters. Most notably, there has been a key focus on delivering wins for voters in the form of tax cuts and more money in pockets. The budget will result in a forecast cash deficit of $14.5million for the 2018-19 financial year.
Boyce Briefings: Superannuation Reforms
31 March 2017
The amended superannuation legislation will come into effect on 1 July 2017. The superannuation changes require a profound adjustment to superannuation strategy and planning and like any change, highlight the importance of expert guidance from accountants and advisers.
Act now to boost your super
10 March 2017
Five questions you need to ask yourself
After months of uncertainty and intense lobbying on the controversial aspects of the federal government’s superannuation reform, the amended superannuation legislation was finally passed in late November.
The superannuation changes present a profound adjustment to the strategic landscape for Self Managed Superannuation Funds (SMSFs). Like any change, they highlight the importance of good guidance from accountants and advisers.