Superannuation (Self Managed Superannuation Funds) Supervisory Levy Amendment Act 2007

Overview

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Amendment Act 2007 was enacted by the Parliament of Australia to address the need for modifying the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991. The primary objective of this Act, as stated in the Minister's second reading speech, was to adjust the supervisory levy amount for self-managed superannuation funds. The Act received Royal Assent on 15 March 2007 and commenced on the same day. This legislative amendment allows for the regulation of the levy amount, ensuring it does not exceed $200, and applies to the 2007-2008 income year and subsequent years, thereby providing clarity and flexibility in the administration of self-managed superannuation funds.

Scope and Application

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Amendment Act 2007 amends the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991, impacting the levy that applies to self-managed superannuation funds (SMSFs). The Act applies to trustees of SMSFs and any other entities managing such funds, and it specifically targets the financial transactions and administration related to these funds. The amendment alters the method of calculating the supervisory levy, allowing the regulations to specify the amount of the levy, which cannot exceed $200. The Act’s jurisdictional reach is across Australia, as it pertains to superannuation funds, which are regulated at the Commonwealth level. The amendment commences on the day of Royal Assent and applies from the 2007-2008 income year onwards. The Act does not specify exclusions or exemptions but allows for the regulation of the levy amount, thus extending its application through subordinate instruments.

Key Provisions

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Amendment Act 2007 primarily amends section 6 of the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991. This section dictates that the amount of levy payable on the lodgment of a return for a year of income is now specified in regulations, with a maximum of $200 (section 6). This amendment is effective from the 2007-2008 income year and later years. Under this Act, the entities governed are primarily self-managed superannuation funds (SMSFs). These funds are now subject to a supervisory levy, the amount of which is regulated and capped at $200 per return for a year of income. The levy is designed to fund the oversight of SMSFs by the Australian Taxation Office (ATO). The levy amount is determined through regulations made under the Act, providing flexibility in setting the levy based on changing circumstances and needs. Breaches of the provisions in this Act can result in various consequences. While the Act itself does not explicitly detail offences or penalties, it is important to note that non-compliance with the regulatory requirements for levy payments could lead to enforcement actions by the ATO. Typically, such actions may include demands for payment of the outstanding levy, interest, and penalties for late payment. In more severe cases, the ATO may pursue legal action to recover the unpaid levies, potentially leading to court-ordered penalties or even fines. The exact penalties and consequences would be in accordance with the applicable tax and administrative laws in Australia.