When the Simpler Super reforms (the Tax Laws Amendment (Simplified Superannuation) Act 2007) were brought in a $ 50,000 Concessional Contributions cap was introduced. This amount was supposed to be indexed annually to the increase in AWOTE (Average Weekly Ordinary Time Earnings) in $ 5,000 increments rounded down. However the 2014/15 year will be the first in which the Concessional Cap will be indexed:
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:
Why did the total value of Collectables held by SMSFs drop so much in 2012?
As of the 18th of March 2014 the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 received Royal Assent, which gives the ATO new powers in it’s role as regulator of SMSFs to:
- Issue Rectification Directions
- Issue Education Directions
- Issue Administrative Penalties
These new powers will apply from 1 July 2014. The act also sets penalties for Early Access Scheme promoters, which will apply from the date of Royal Assent, among other non-superannuation tax changes.