ATO set to collect on increased SMSF Supervisory Levy
While your self-managed super fund is busy working towards your retirement, it is also at work funding the Government’s costs to regulate the SMSF sector, and with the recent reforms, it’s about to pay even more.
The Mid-Year Economic and Fiscal Outlook (MYEFO) announced a transitional increase to the annual supervisory levy, changing to $191 in 2012-13 and to $259 from 2013-14 onwards. Along with this increase is a change to ‘bring forward’ the payment, so it is levied and collected in the same year of operation. Lodgement of the SMSF Annual Return will continue to automate the supervisory payment, yet will no longer collect the levy in arrears, i.e. collected at the end of the period in which it applied.
Implementing this timing change will require each SMSF to make a catch-up payment amortised over two years. What this means in practice, is that on lodgement of your 2013 and 2014 annual returns (AR), you will pay the following:
2013 AR: $321 – consisting of the 2013 levy plus 50% of the 2014 year levy (rounded up);
2014 AR: $388 – including the remaining half of the 2014 levy, plus 100% of the 2015 levy.
In effect, payments made in these two financial years will be higher than the nominal levy applicable to each year. From then on, your Fund will pay $259p.a. consisting of 100% of the next year’s levy… provided there are no further increases!
The following visual outlines the timeline of changes expected under the new arrangements
