‘Strong case’ for reducing SMSF levy
Recent measures that saw the clearing of a backlog of tax amendments should allow the SMSF levy to be reduced “substantially”, according to the SMSF Professionals’ Association of Australia (SPAA).
Late last year, Assistant Treasurer Arthur Sinodinos cleared a backlog of 92 announced but unlegislated tax and superannuation measures.
The clearing of these measures should allow the SMSF levy to be reduced in the May Budget, according to Jordan George, SPAA’s senior manager, technical and policy.
“These measures… are no longer part of the SMSF architecture, so it seems fair to assume the cost of administering the SMSF sector has fallen accordingly,” Mr George said.
“The ATO has agreed to provide evidence for the most recent increase in the levy and why the cost-recovery process for SMSFs had increased, but the industry has yet to see the evidence.
“SPAA has no issue with a levy. But we firmly believe that the levy should accurately reflect the ATO’s costs in administering the SMSF’s superannuation obligations and, as such, should be revenue neutral,” he added.
Mr George’s comments reiterate his views expressed in December 2013, when he told SMSF Adviser the cost of administering measures that are not going ahead should be considered when the SMSF levy is next reviewed.