Unpaid Super Amnesty

Discussion in 'Accounting & Tax' started by [email protected], 11th Mar, 2020.

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  1. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    So the long promised super amnesty has become law as of last Friday !!

    But it comes with a warning for employers who may have a liability. They need to act before 6th September.

    The tax office is warning businesses to come forward and admit if they failed to pay workers superannuation before a newly-introduced amnesty ends on September 6, or expect tougher penalties.

    The amnesty was finally written into law on Friday and is an "unusual" and "first-of-its-kind" opportunity for employers to avoid penalties, Australian Taxation Office deputy commissioner James O'Halloran said
    Affected employees should start reminding bosses now.

    Employers who settle the unpaid super dont just avoid penalties they can claim a deduction for arrears that occurred after 24 May 2018

    The penalties include:
    • administration component ($20 per employee per quarter)
    • Part 7 penalty (up to 200% of the shortfall).
    Employers will still need to pay nominal interest on the unpaid amounts at 10%.

    The ATO further cautioned :
    The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG. If we identify these employers before they come forward, they will not be eligible for the benefits of the amnesty.
    Who will be willing to outstare and outblink the ATO ?
     
    Last edited: 11th Mar, 2020
  2. Mike A

    Mike A Accountant Business Member

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    important to note that the amnesty only applies for missed payments up to the March 2018 Quarter. Any missed payments after that date are not eligible for the amnesty
     
  3. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    The ATO seem to be ignoring the strict application of this and are happy to get any arrears cleared. I believe the Commissioner has a wider discretion after March 2018 (which became due on 28 May and just prior to the media release) as that was the date from which the media release applied. So it is yet another case of law by media release and also legislation (nuts eh).

    I saw a media report on a deal struck with independants who want a new scheme that takes the recovery from the ATO so something actually happens. Apparently the ATO showed them at the Treasurers request how newer data from Single Touch Payroll is being accumulated and will be used to enforce unpaid super.

    The sibdiv 265c Superannuation Guarantee (Administration) Act 1992 amendment means the Commisioner can now now estimate arrears and issue a notice which must be paid. The Assistant Ministers admission is the ATO now has this single touch data to do that and revisions allow this to be used for that purpose. The onus is on a employer to actually pay the correct sum and not have arrears. If they do this employer loses any amnesty too. Personally I like the "education direction" (s384) that the ATO can now use. It sounds like a North Korean style labour camp is going to be built by the ATO. At least the food should be good. All those celeb chefs will fill it fast.
     
  4. Propagate

    Propagate Well-Known Member

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    About time. Seems none payment of Super is pretty rife? (anecdotally speaking). Pretty much everyone I know in my industry has been stung, not paid enough or not paid at all.

    I continually hounded my old boss to pay my Super, he'd catch a little up sporadically here and there, then he went bust and I was left owed a decent chunk (8+ months worth) that Ill never see again. Most of the guys were owed a lot nore, I cam of lightly as I was constantly on his case to pay me it.

    When I set our company up the guys all know their super gets paid every pay day alongside their wages, it's literately 3 extra mouse clicks on a pay run, non of this quarterly rubbish.

    About time employers were held accountable to pay staff properly.
     
  5. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    High Court says its part of remuneration. Failure to pay it is theft. Its about time all laws cracked down on this. We dont accept a armed robbery at a servo is legal so why should workers fund someones choice to steal ? If you cant afford to pay them then see a liquidator. Some of those celebrity chefs should be jailed. Years and years of blatant under payments and theft. They all live the high life funded by theft. That ponytail chef that helps Qantas is a pirhana yet they keep him on a pedestal. I would rather puke than eat what he stole. If you can rip off your basic workers why not serve up dog meat ? For all we know they do. Welcome to the Brauhuas. Home of the Schnauzer Snitzel.

    Scum employers who do the followng should all be hung up :
    • Fail to pay the SGC by the due date (or at all)
    • Pay cash (now not deductible) or illegally and then drag a employee into their blatant scheme to defraud the Commonwealth AND the employee from rightful entitlements
    • Sham employers who engage "contractors" who are really employees and deceive them about entitlements
    • Pheonix through insolvency including using dodgy accountants and lawyer. Find them and strike them off.
    • Dodgy third party contracting and labour hire arrangements when the intent is that "Fred" works for the entity but is getting ripped off and losing entitlements and protections. Its the modern day kid in a coal mine.
    Unfortunately Libs have done close to jack about this as have endless Governments. The one thing Shorten and Albo did offer to do was massively crack down on all this uisng union might. So they should and a great things unions should do. But in these tough times I can see the Libs backing off small business. Ask any employee if they would like to forego their income and they wont agree.

    Single Touch Payroll should even be expanded to certain contracts (ie those principally for labour). So that if the contract isnt paid through STP then its not deductible.


    https://www.smh.com.au/business/wor...of-worst-ever-wage-theft-20191018-p531wa.html

    In a 14-page complaint made on behalf of the union, labour law firm Maurice Blackburn has demanded the Fair Work Ombudsman seek substantial financial penalties against Rockpool, alleging the high-end restaurant group was responsible for one of the “most egregious cases of wage theft” seen in Australia.

    Rockpool Dining Group is Australia's largest high-end restaurant group and includes 16 restaurant brands and more than 80 restaurants across Australia. Its brands include "premium" eateries Rosetta and Sake, as well as casual restaurants Munich Brauhaus and The Bavarian and its flagship, Rockpool Bar & Grill in Melbourne, Sydney and Perth.
     
    Last edited: 12th Mar, 2020
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