The Government has made reforms to supervisory levy arrangements for self managed superannuation funds (SMSF).
Superannuation funds are required to pay an annual supervisory levy to the regulator of the fund. For SMSF’s, the regulator is the ATO.
The changes made are:
-the timing for collection of the levy
-an increase to the levy ensuring that the ATO’s regulatory costs are fully covered
The payment of the SMSF levy will be brought forward. It will now be levied and collected in the same financial year.
This is consistent with the Australian Prudential Regulation Authority (APRA) regulated funds, which pay the superannuation supervisory levy in the same financial year it is levied.
This change in the timing of the collection of the SMSF levy will be phased in over two years, allowing the time needed for the SMSF to adjust. Transitional provisions apply to the levy for the 2013-14 year of income so that it is payable in two instalments.
Currently, there is a shortfall of SMSF levy revenue compared to the costs of regulating the sector. The Government will increase the annual SMSF levy from $191 in 2012-2013 to $259 from 2013-2014 and onwards to ensure full cost recovery. This increase in cost will allow the ATO to continue to regulate the rapidly growing and diverse sector effectively.