We can help you find your Lost Super

It's Easy


Register your details below and we'll contact
you within one business day.

Your Name
Your Email
Phone Number
Your Comments

Book a Skype Chat


Register your details below and we'll contact
you when it suits you.

Your Name
Skype Username
Phone Number
Your Email
Preferred Time
Your Comments

Whats Skype? Learn More

Make an Enquiry


Register your details below and we'll contact
you within one business day.

Your Name
Your Email
Phone Number
Enquiry Type
Preferred Time
Your Message

Book a no-obligation consultation


Register your details below and we'll contact you within one business day to set up your no-obligation consultation.

Register below to receive our FREE email newsletter




Blog

August 21st, 2013
SMSF Supervisory Levy by Daniel Martinez

In the past, the ATO supervisory levy is not a cost I would have paid a lot of attention to when advising clients on the costs of setting up and running a self managed super fund (SMSF).  I might need to reconsider given some recent changes.

The ATO supervisory levy is an annual cost imposed on every SMSF.  The levy is designed to recover the cost of monitoring the SMSF sector.

The ATO SMSF levy has increased from $45 six years ago to $259 for 2013/14.  That’s an increase of 575 per cent!

In the past, the levy was paid in arrears at the time the fund’s tax return was lodged.  This could be nearly 12 months after the financial year had ended.  Going forward, the levy will be paid in advance.  The increase in the cost of the levy itself and the change in timing has resulted in a significant increase in the levy over the next couple of years.

Any SMSF trustee involved in preparing or lodging the 2012/2013 SMSF return may be shocked to discover that they will have to cough up $321 for the supervisory levy.

How did the ATO calculate this mysterious figure of $321 when the supervisory levy was supposed to be $191?

The $321 ATO levy for the 2012/2013 year is made up of two components:

  • the $191 levy for the 2012/2013 year, and
  • $130 (i.e. 50 per cent of the 2013/14 ATO levy of $259).

The full effect of the ATO levy increase and advance payments will be felt when lodging the SMSF return for the 2013/2014 financial year. You can expect a whopping ATO supervisory levy of $388. The levy amount of $388 represents the remaining half of the 2013/2014 year levy ($129), and the full amount of the 2014/2015 year levy, paid in advance ($259).

From the 2014/2015 financial year, the ATO levy will revert to a single annual amount of $259, paid in advance for the following financial year. The assumption, of course, is the federal government doesn’t further increase the SMSF levy in the meantime.

New Funds

If you’re planning to set up a new SMSF during the 2013/2014 financial year, then allow for an ATO supervisory levy of $518 at lodgement time. The hefty amount of $518 represents the levy amount for the 2013/2014 and 2014/2015 financial years.

From the 2013/2014 financial year onwards, the double payment of the ATO levy will apply to any new SMSF to ensure that the levy is paid in advance, as is required by already established SMSFs.

Source: The Financial Review Trish Power PUBLISHED: 07 Aug 2013 00:32:05

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to be notified of new blog posts


 

Book a
Skype chat
Make an
enquiry




Arrange a Skype Chat



Register your Skype details and your
preferred time for a chat. We'll get back to you
as soon as possible.

Your Name
Skype Username
Phone Number
Your Email
Preferred Time
Your Comments
It is an absolute pleasure to work with Angelo, Frank and the Brisbane team and highly recommend PFG for any financial services that our members require.

Brad O’Carroll
PLUMBERS UNION QLD

Accredited by AMP Financial Planning
PFG Financial Services Pty Ltd ABN 23 052 977 189 and PFG Global Pty Ltd ABN 50 679 416 839 trading as PFG Financial Services (Global) are Corporate Authorised Representatives and Credit Representatives of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706. For further details including financial services we can offer you and how we are renumerated, please read the Financial Services & Credit Guide V 5.0 & FPFG Global Pty Ltd Financial Services & Credit Guide V 5.1 General Advice Warning: This website contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.