The SMSF supervisory levy is a fee charged by the Australian Taxation Office (ATO) to regulate and oversee SMSFs. The fee is paid annually by SMSFs, and the amount is determined by the ATO based on the fund’s assets. The purpose of the levy is to ensure that SMSFs are being managed in accordance with the law and to protect the retirement savings of members.
According to the ATO, the supervisory levy is “an annual levy imposed on SMSFs to recover the costs of regulating and supervising the SMSF sector.” The levy is calculated based on the market value of the fund’s assets at the end of the financial year. The current supervisory levy rate is $259 per annum.
The SMSF supervisory levy is not a new fee, and it has been in place since 1999. The levy was introduced to ensure that SMSFs were regulated and monitored to the same standard as other super funds, despite the self-managed nature of the fund.
According to the ATO, the SMSF supervisory levy is used to fund a range of activities, including:
- Administering the registration and reporting requirements for SMSFs
- Conducting compliance checks and audits to ensure SMSFs are meeting their obligations
- Providing education and support to SMSF trustees and professionals
- Implementing new regulations and legislation to ensure SMSFs operate in line with the law
- The ATO emphasizes that paying the SMSF supervisory levy is a legal requirement for all SMSFs. Failure to pay the levy can result in penalties and fines.
According to the ATO, “The supervisory levy is a critical element of our regulatory framework, and it helps to ensure that SMSFs are managed responsibly and in line with the law. It is important that all SMSF trustees understand their obligations and make sure they pay the supervisory levy on time.”
The SMSF supervisory levy is an annual fee paid by self-managed super funds to cover the costs of regulating and overseeing the SMSF sector. The levy is calculated based on the market value of the fund’s assets, and failure to pay can result in penalties and fines. The ATO emphasizes the importance of paying the levy to ensure SMSFs are being managed responsibly and in line with the law.
References:
Australian Taxation Office. (2021). SMSF supervisory levy. Retrieved from https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/SMSF-resources/SMSF-supervisory-levy/
Australian Taxation Office. (2021). Self-managed superannuation funds. Retrieved from https://www.ato.gov.au/super/self-managed-super-funds/
Australian Taxation Office. (2021). SMSF supervisory levy frequently asked questions. Retrieved from https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/SMSF-resources/SMSF-supervisory-levy-frequently-asked-questions/
