ATO Supervisory Levy – Trend, Transition and Collection

The purpose of the ATO Supervisory Levy is to collect revenue to offset the costs of the ATOs role as regulator of SMSFs. As a result the amount of the levy has been trending upwards in recent years. Additionally the levy is currently being transitioned from being collected for the prior year to a pre-payment for the following year – resulting in a spike in the amount payable in one year, as shown in the following graph:

ATO SMSF Supervisory Levy Amount Payable by Year

Prior to the 2007/08 financial year the ATO Supervisory Levy was $45 and collected annually by a separate payment, for 2007/08 it increased to $ 150 and was collected as part of the SMSF Annual Return. These amounts were paid for the previous year, however starting in the 2012/13 year this began to move to a collection for the following year. In the 2012/13 year a fund paid the levy of $ 191 for the 2013 year plus half of the levy for 2014 – $ 130, for a total of $ 321. In the 2013/14 Annual Return funds will pay the remaining $ 129, plus the $ 259 levy for 2015, for a total of $ 388. In the 2015 return funds will pay $ 259 for the 2016 year.

New funds registering in the 2013/14 financial year don’t pay the levy in installments like exiting funds, they pay both years at once, so a fund registering now will pay $ 518 with the first annual return – $ 259 for the 2013/14 and $ 259 for 2014/15. Funds winding up in the transition years don’t pay the installment for the following year, and once the transition is finished wont pay the levy in the year they wind-up.

A table setting out what is payable when is available at the ATO website.

These amounts are current, though the levy can change through regulation, the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 allows the regulations to set the amount of the levy as high as $ 300.

According to the ATOs Annual Report in the 2012/13 year the ATO collected $ 89 million from the levy:

Amount of ATO SMSF Supervisory Levy Collected

Given the trend it seems unlikely that the supervisory levy will stay at $ 259 for long.

 

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