SMSF Super levy Cost and Guide

When you set up an SMSF several costs are involved in setting up the fund and ongoing operations of the fund. Some of them are one time payment like SMSF Set Up and other are occurred every year like accounting fee, audit fee etc. One of them is the ATO supervisory levy which is paid every year by the fund from inception till wind up.

How much does Super levy cost?

Currently ATO super levy is $259 and is paid as part of tax payment for the annual return. Since 2014 financial year super levy remained at $259 and for the existing funds it was adjusted to $259 in 2013 and 2014 financial year tax return lodgement where levy for 2013 was $191 but $321 was charged and for 2014 it was $259 but $388 was charged to make it advance payment for one year for existing funds. For newly funds with first time lodgement of return from 2014 financial year Super levy was charged $518 which includes $259 advance payment to next year Super levy. If the fund is set up part way through the year Super levy will remain same.

The payment done in advance in first year will be adjusted in the wind-up year return where no levy will be paid for the final year because it was already paid in advance in year one return.

Payment of Super levy depends on the following three factors:

– If the fund is newly registered fund and it is the first return of the fund

– If the fund is an existing fund

– If the fund is wind up during the year

Type of SMSF Levy payable

Newly registered fund and first return $518

Existing continuing fund $259

Fund wind up in the year $0

How and when to pay Super levy?

SMSF Super levy is paid with the annual return tax payment or if fund is getting refund from the ATO levy will be deducted from the refund amount and remaining funds refund to SMSF. Irrespective of the income or fund earnings Super levy will be paid same and is paid even if there is no tax payable or fund earnings.

Due date of the annual return is 31 st Oct after the end of the financial year for newly registered fund lodged by trustees themselves and 28 th Feb from year 2 if last year was lodged on time. With tax agent funds get some extra time which will be 28 th Feb for newly registered funds with first year lodgement and 15 th May from next year if last year return was lodged in time.

Why does ATO charge Super levy?

Australian taxation office charge Super levy to every fund on yearly basis to regulate the SMSF sector and help to educate SMSF trustees/members about their compliance obligations.

Can you claim tax deduction for Super levy paid to ATO?

Yes, you can claim deduction for Super levy amount paid to tax office and is a deductible expense to the fund. Even if the fund is in full pension phase and supporting non-taxable income Super levy is still deductible as part of the SMSF tax return lodgement.