House of Representatives

Explanatory Memorandum
(Incorporating Correction)

(Circulated by the authority of the Minister for Employment and Workplace Relations and Minister for Financial Services and Superannuation, the Hon Bill Shorten MP)

General outline and financial impact

Self managed superannuation funds supervisory levy arrangements

This Bill amends the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 and the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 to reform the self managed superannuation fund (SMSF) supervisory levy arrangements. The changes ensure that the levy is collected from SMSFs in a more timely way, and the Australian Taxation Office's costs of regulating the sector are fully recovered.

Date of effect: 1 July 2013.

Proposal announced: This measure was announced in the 2012-13 Mid-Year Economic and Fiscal Outlook on 22 October 2012.

Financial impact: The reform of the SMSF levy arrangements will have the following impact on the underlying cash balance. The table includes both the increase in levy receipts and additional funding for administration of the change.

Human rights implications: The Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights, Chapter 1, paragraphs 1.26 to 1.32.

Compliance cost impact: Nil.