Govt increases SMSF levy in MYEFO
Despite predictions to the contrary, the Federal Government has steered clear of making major changes to the superannuation settings in its Mid-Year Economic and Fiscal Outlook (MYEFO).
However, the most immediate impact for self-managed superannuation funds (SMSFs) is a 36 per cent increase in the SMSF levy from 2013/14 onwards, with funds being required to pay in the relevant financial year.
The other element most directly affecting superannuation was the announcement that the Government would make changes to the operation of lost superannuation and unclaimed bank account and life insurance provisions.
It said the changes would increase the number of lost superannuation accounts transferred to the Australian Taxation Office, which would be given additional funding to implement the measure and to use its data-matching resources to match lost accounts with active accounts.
Further, the MYEFO stated that for the first time the Government would pay interest at the rate of CPI inflation on all unclaimed superannuation monies reclaimed from the ATO and on unclaimed monies reclaimed from the Australian Securities and Investments Commission from 1 July 2013, which would preserve their value over time.
The MYEFO announcement said the ATO would also receive funding for further compliance activities to continue to target profit-shifting and high wealth individuals, and to focus on outstanding income tax lodgements.
It also referenced the removal of the concessional fringe benefits tax treatment for in_house fringe benefits accessed by way of salary sacrifice arrangements.
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