You need to pay the supervisory levy with your SMSF annual return. The amount payable is stated on the return. Since 2014-15, the annual levy has remained the same which is $259 and remains the same for the 2021-22 financial year. It’s important to note that the levy must be paid in advance for the following financial year.
The positive aspect of the advance payment system is that an SMSF does not have to pay the annual ATO levy in the year in which it is wound up because they have already paid for that year.
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Continuing fund payments
If your fund is continuing, you must pay your supervisory levy in advance of the next financial year.
According to the Australian Taxation Office, how much you have to pay will depend on if you are:
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Not a newly registered SMSF: Your amount payable will be $259 which goes towards the next financial year. For example, if you are lodging for the 2019–20 financial year, the payment will cover the 2020–21 financial year.
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A newly registered SMSF: Your amount payable will be $518 which covers the current financial year and the following one. For example, if you are lodging for the 2019–20 financial year, the payment will cover the 2019–20 and 2020–21 financial years.
Winding-up fund payments
If your fund is winding-up, you may not be required to pay a supervisory levy if you paid it in the previous financial year.
According to the ATO, this depends on if you are:
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Not a newly registered SMSF: You are not required to pay the levy as you already paid for the current financial year.
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A newly registered SMSF: The amount payable will be $259 to cover the current financial year.
When to pay
The supervisory levy needs to be paid with the fund’s annual tax return. SMSF trustees are responsible for lodging an annual return on behalf of their fund as part of their compliance obligations.
The levy is added to the tax payable by your SMSF for member contributions and fund earnings (or deducted from any tax refund your SMSF may be entitled to receive). It is payable even if your SMSF has no tax payable on member contributions or fund earnings.
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Alex Brewster
