Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991

Overview

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 was enacted to address the need for a supervisory levy on self-managed superannuation funds (SMSFs). This Act imposes a levy on SMSFs to fund the supervision of these funds by the Australian Prudential Regulation Authority (APRA). The levy ensures that SMSFs are adequately regulated to protect the interests of fund members. The Act applies the provisions of the Superannuation Industry (Supervision) Act 1993 to itself, ensuring consistent regulatory oversight. The levy amount is specified in regulations, not exceeding $300 for a year of income. The Governor-General has the authority to make regulations under this Act to determine the exact levy amount. The Act was enacted by the Commonwealth Parliament and has undergone several amendments to refine its application and regulatory framework.

Scope and Application

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 applies to self-managed superannuation funds (SMSFs) in Australia. This legislation imposes a supervisory levy on these funds, which is payable in accordance with section 15DA of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987. The amount of the levy is determined by regulations and cannot exceed $300 for a year of income. The Act extends to the Commonwealth of Australia and is administered under the framework set out in the Superannuation Industry (Supervision) Act 1993. The imposition of the levy and the amount payable are subject to modifications through regulations made by the Governor-General. The Act incorporates amendments from various legislative acts, including the Superannuation Supervisory Levy Amendment Acts and the Superannuation Legislation Amendment Acts, with the most recent amendment being the Superannuation Legislation Amendment (Reform of Self Managed Superannuation Funds Supervisory Levy Arrangements) Act 2013. There are no uncommenced or misdescribed amendments affecting this Act as per the compilation.

Key Provisions

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 imposes a levy on self-managed superannuation funds (SMSFs). Under section 5 of the Act, this levy is payable in accordance with section 15DA of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987. The amount of the levy is specified in regulations made under section 6, with the levy not exceeding $300 for a year of income. The Governor-General has the authority to make these regulations, which are detailed in section 7 of the Act. Section 3 of the Act, although repealed, is relevant for historical context as it previously dealt with the application of the Superannuation Industry (Supervision) Act 1993 to this Act. The Act imposes several obligations on the trustees of SMSFs. Trustees are required to ensure the levy is paid as specified under section 5, which aligns with the payment obligations outlined in section 15DA of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987. Trustees must also adhere to the amount specified in regulations under section 6, which cannot exceed $300 per year of income. Trustees must keep accurate records and provide necessary documentation to demonstrate compliance with these levy requirements. Breaching the obligations outlined in the Act can result in legal consequences. The Act itself does not explicitly detail penalties for non-compliance; however, the Superannuation Industry (Supervision) Act 1993, which applies to this Act under section 3, may impose penalties. Penalties for breaches of superannuation laws can include fines and imprisonment. For instance, under section 134D of the Superannuation Industry (Supervision) Act 1993, individuals can be fined up to $21,000 and/or imprisoned for up to five years for serious breaches. Trustees who fail to comply with the levy requirements may face similar penalties, depending on the nature and severity of the breach.