Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018

Administered by Department of the Treasury

Legislation au F2018L00606 Regulations In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Minister for Revenue and Financial Services

 

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018

Section 22 of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 (the Act) prescribes the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018 (the Regulations) is to remake and improve the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 and ensure their effect continues. The Legislation Act 2003 provides that all legislative instruments, other than exempt instruments, are automatically repealed after 10 years or in accordance with the progressive timetable set out in section 50. The Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 was scheduled for automatic repeal on 1 April 2019.

The purpose of the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 was to prescribe the timing for when the self managed super fund supervisory levy was due and payable. That purpose is achieved by the Regulations.

The Regulations remake and improve the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 by repealing redundant provisions, simplifying the provisions and adopting current drafting practices, such as referring to ‘sections’ rather than ‘regulations’.

The changes do not affect the substantive meaning or operation of the provisions.

An exposure draft of the Regulations and accompanying explanatory statement were released for public consultation from 22 February to 23 March 2018. No submissions were received during the consultation period.

Further details of the Regulations are set out in the Attachment.

The Regulations commence on 1 July 2018.

The Office of Best Practice Regulation considered the Regulations have minor impact on business, community organisations or individuals and has certified that the remaking of the Regulations do not require a Regulatory Impact Statement (OBPR ID: 23466)

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Small Superannuation Account Regulations 2018

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Regulations remake and improve the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 by repealing redundant provisions, simplifying the provisions and adopting current drafting practices, such as referring to ‘sections’ rather than ‘regulations’.

The changes do not affect the substantive meaning or operation of the provisions.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 


ATTACHMENT

Details of the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018

Section 1 – Name of Regulation

This section specifies the title of the Regulations as the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018.

Section 2 – Commencement

This section provides that the Regulations commence on 1 July 2018.

Section 3 – Authority

This section provides the Regulations are made under the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987.

Section 4 – Schedules

This section provides that each instrument identified in a Schedule to the Regulations is amended or repealed in accordance with these Regulations.

Section 5 – Definitions

This section provides a definitions section listing the only defined term used in the Regulations. This replaces regulation 3 of the prior Regulations.

Section 6 – When levy due for payment

This section specifies that an entity be required to pay the levy for an income year on the day it is required to lodge its annual return for the preceding income year. Consequently, an entity will be required to pay the levy for its first and second year on the day it lodges its first annual return.

Schedule 1 – Repeals

Schedule 1 repeals the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1999 from 1 July 2018.

Finding table

As a result of some of the changes described above, it became necessary to renumber provisions of the Regulations. This Explanatory Memorandum includes a finding table to assist in identifying which provision in the Regulations corresponds to a provision in the old law that has been rewritten or consolidated, and vice versa.

References to the old law are to the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999. References to the new law are to the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018. Also, in the finding table, ‘no equivalent’ means that this is a new provision that has no equivalent in the old law.

 

Old law

New law

Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999

Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018

1

1

2

2

4

3

No equivalent

4

3

5

5

6

6

No equivalent

No equivalent

Schedule 1

 

Overview

The Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018 were enacted to ensure the continuation and improvement of the regulatory framework governing the taxation of self-managed superannuation funds (SMSF). This remaking of regulations was necessary due to the automatic repeal of the previous Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 under the Legislation Act 2003. The regulations were issued by the Minister for Revenue and Financial Services, pursuant to section 22 of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987, aiming to maintain the integrity and efficiency of the taxation system for SMSFs without altering the substantive requirements or obligations of the regulated entities. The policy objective is to streamline the regulatory environment while ensuring the continued effective administration of the levy on SMSFs, thus supporting the broader goal of maintaining a robust and compliant superannuation system in Australia.

Scope and Application

The Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018, made under the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987, primarily aim to improve and modernise the existing regulatory framework for self-managed superannuation funds (SMSFs). The Regulations apply to trustees and members of SMSFs, as well as other entities involved in the management or administration of these funds. These regulations cover various aspects of the administration, governance, and taxation of SMSFs, ensuring they comply with the requirements set out in the Act. Geographically, the Act and its regulations apply across the Commonwealth of Australia, thereby establishing a uniform regulatory environment for SMSFs nationwide. The Regulations repeal the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1999 and make minor technical amendments to streamline and modernise the existing regulatory framework without altering the substantive legal requirements. Any further extension or restriction of application is achieved through subordinate instruments, which may be made under the authority granted by the Act.

Key Provisions

The Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018 (the Regulations) primarily aim to update and improve the existing Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 (the old Regulations). The primary changes introduced by the Regulations include repealing outdated provisions, simplifying the text, and adopting modern drafting practices, such as referring to 'sections' instead of 'regulations' (Section 1). These changes do not alter the substantive meaning or operation of the provisions (Section 4). The Regulations are set to commence on 1 July 2018 (Section 2), and they are made under the authority of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 (Section 3). The Regulations also include a schedule that details amendments to various instruments (Section 4). A definitions section is provided to clarify the terms used in the Regulations, replacing regulation 3 of the old Regulations (Section 5). The Regulations impose specific obligations on self-managed superannuation fund entities. These include the requirement to pay the supervisory levy on the day the entity is required to lodge its annual return for the preceding income year (Section 6). This means that for their first and second years, entities must pay the levy on the day they lodge their first annual return. The Regulations also detail the timing for when the levy is due and payable, ensuring compliance with the Act. The Act itself does not explicitly detail offences, penalties, or consequences for breaches within the Regulations. However, any breaches of the underlying Act or related regulations could result in penalties as prescribed by the Superannuation Industry (Supervision) Act 1993 and other relevant legislation. These penalties may include fines and other civil or criminal sanctions depending on the nature and severity of the breach. It is important for entities to adhere to the provisions set out in the Regulations to avoid potential penalties and legal consequences.

Legal classification tags

Area of Law
Taxation Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.