The peak body for the self-managed superannuation fund (SMSF) sector has rejected calls by the wider superannuation industry for SMSFs to make substantial financial contributions to a $121.5-million levy.
SMSF Professionals’ Association of Australia (SPAA) chief executive Andrea Slattery said such suggestions were “grossly inadequate and fundamentally flawed”.
“So based on the call for SMSFs to pay an extra $38 million in levies to help cover the cost of SuperStream, it equates to about $80 for each fund in our sector,” Slattery said.
“As most SMSFs have only one or two members, it would mean each member would be paying, on average, about $40 extra for the cost of the SuperStream measures.
“No doubt most of the APRA [Australian Prudential Regulation Authority]-regulated funds will be able to spread the cost of any levy increase across many thousands of members.”
Based on in-house figures, the levy increase for APRA funds would be far less than $40, and even less than $5 per member, she said.
She also added the SMSF levy recently rose by $20.
“We assumed this was to cover the cost of SuperStream. If this is correct, this increase will collect $9.4 million or $20 per SMSF or $10 per SMSF member (on average), still well above what each APRA member will pay,” she said.
“We have been a strong supporter of the SuperStream measures and we strongly refute any claim that the SMSF sector is not paying its fair share towards the cost of these measures.
“The figures clearly suggest SMSF members are, on average, already contributing more towards the cost of the SuperStream than members of APRA-regulated funds.
“So to say the SMSF sector should be paying more towards the cost of SuperStream simply defies logic.”
She said just because on average SMSF members had higher balances than APRA fund members, it did not mean the Australian Taxation Office would incur higher SuperStream costs for SMSF members versus APRA fund members.
“In fact, the opposite might well be the case as APRA funds are more likely to have higher volumes of contributions and other transactions,” she said.
Slattery’s comments come in response to calls by the Australian Institute of Superannuation Trustees and the Association of Superannuation Funds of Australia for the SMSF sector to share the burden of the APRA levy.
