Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (SELF MANAGED SUPERANNUATION FUNDS) SUPERVISORY LEVY IMPOSITION AMENDMENT REGULATION 2012 (NO. 1) (SLI NO 132 OF 2012)

EXPLANATORY STATEMENT

Select Legislative Instrument 2012 No. 132

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

                            Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Amendment Regulation 2012 (No. 1)

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 (the SMSF Levy Act) imposes a supervisory levy on self managed superannuation fund (SMSF) trustees, payable on lodgment of their annual return. This levy is designed to fund the costs of regulating the SMSF sector.

Section 7 of the SMSF Levy Act provides that the Governor-General may make regulations specifying the amount of levy payable on the lodgment of a return for a year of income. That amount cannot exceed $200.

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 (the SMSF Levy Regulations) prescribe the amount of levy payable by SMSF trustees on lodgment of their annual return.

The purpose of the Regulations is to amend the SMSF Levy Regulations to increase the amount of levy payable. The levy was increased from $45 to $150 per annum with effect from 1 July 2007. The levy was subsequently increased from $150 to $180 for the 2010-11 year of income. The Regulations will increase the levy payable from $180 to $200 for the 2011-12 year of income. The levy will then reduce to $191 for the 2012-13 and subsequent years of income.

It is intended that the additional revenue collected from the higher levy amount will offset the costs of implementation of SMSF auditor registration which was announced as part of the Government's Stronger Super package. SMSF auditor registration aims to raise the standard of SMSF auditor competency and ensure there are minimum standards across the sector. This measure will involve costs to the Australian Taxation Office and the Australian Securities and Investments Commission.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulations commence on the day after registration, and apply in relation to the 2011-12 year of income and each subsequent year of income.

No public consultation was undertaken because the Regulations give effect, in terms announced in the Budget, to an adjustment to a tax.

                                                Authority:       Section 7 of the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991

Statement of Compatibility with Human Rights

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

Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Amendment Regulation 2012 (No. 1)

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 purpose of the Legislative Instrument is to increase the self managed superannuation fund (SMSF) Levy.

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.

Bill Shorten Minister for Financial Services and Superannuation

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