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Reform of SMSF levy arrangements

The Government has made reforms to supervisory levy arrangements for self managed superannuation funds (SMSF).

Superannuation funds are required to pay an annual supervisory levy to the regulator of the fund. For SMSF’s, the regulator is the ATO.

The changes made are:

-the timing for collection of the levy

-an increase to the levy ensuring that the ATO’s regulatory costs are fully covered

The payment of the SMSF levy will be brought forward. It will now be levied and collected in the same financial year.

This is consistent with the Australian Prudential Regulation Authority (APRA) regulated funds, which pay the superannuation supervisory levy in the same financial year it is levied.

This change in the timing of the collection of the SMSF levy will be phased in over two years, allowing the time needed for the SMSF to adjust. Transitional provisions apply to the levy for the 2013-14 year of income so that it is payable in two instalments.

Currently, there is a shortfall of SMSF levy revenue compared to the costs of regulating the sector. The Government will increase the annual SMSF levy from $191 in 2012-2013 to $259 from 2013-2014 and onwards to ensure full cost recovery. This increase in cost will allow the ATO to continue to regulate the rapidly growing and diverse sector effectively.

Posted on 7 March '14 by , under Super.

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The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

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Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

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