Call to extend amnesty on super guarantee
Peak corporate bodies are urging the federal government to extend the superannuation guarantee amnesty put in place due to COVID-19.
Peak corporate bodies are urging the federal government to extend the superannuation guarantee amnesty put in place due to COVID-19, as economic pressures are straining payroll infrastructure.
A letter addressed to Liberal senator Jane Hume shows a collective concern from tax, legal and financial associations that current assistance measures set to expire in September need to be extended to support employers still facing harsh financial burdens caused by the coronavirus pandemic.
The joint letter is signed by CPA Australia, Corporate Tax Association, the Institute of Public Accountants, Law Council of Australia, the Tax Institute, Chartered Accountants Australia and New Zealand and the Superannuation Funds Association — all calling for the extension of the superannuation guarantee amnesty to March 2021.
The amnesty is open till September 7, and allows participating businesses to pay unpaid super to current and past employees without incurring a penalty.
The joint submission flagged restricted working conditions were likely to persist into the next financial year and would impact business’ ability to submit an application by the deadline.
It also noted obtaining amnesty through the scheme was a time consuming and cumbersome process, as contribution shortfalls needed to be calculated for every quarter dating back to July 1992.
“Many employers’ HR and payroll areas are already under significant pressure due to managing the significant disruption to workplaces as a result of the impacts of COVID-19, which include managing JobKeeper payments, restructuring working arrangements for employees and dealing with downsizing and staff redundancies,” the letter said.
The joint letter also highlighted that the minimum 100 per cent penalty limit should be dropped at the discretion of the regulators, if the reason for not paying super to employees was a direct result of the pandemic.