{"id":"C2004A04136","name":"Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991","slug":"superannuation-self-managed-superannuation-funds-supervisory-levy-imposition-act-1991","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"61 of 1991","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":37195,"registerId":"commonwealth-C2004A04136-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences, or is taken to have commenced, as the case requires, on the commencement of the Occupational Superannuation Laws Amendment Act 1991.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Application of the Superannuation Industry (Supervision) Act","content":"#### 3 Application of the Superannuation Industry (Supervision) Act\n\n  Section 9, and Division 2 of Part 1, of the Superannuation Industry (Supervision) Act 1993 apply in relation to this Act in a corresponding way to the way in which they apply in relation to that Act.","sortOrder":2},{"sectionNumber":"5","sectionType":"section","heading":"Imposition of superannuation supervisory levy","content":"#### 5 Imposition of superannuation supervisory levy\n\n  Levy payable in accordance with section 15DA of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 is imposed.","sortOrder":3},{"sectionNumber":"6","sectionType":"section","heading":"Amount of levy","content":"#### 6 Amount of levy\n\n  The amount of levy payable for a year of income is an amount (not exceeding $300) specified in regulations for the purposes of this section.","sortOrder":4},{"sectionNumber":"7","sectionType":"section","heading":"Regulations","content":"#### 7 Regulations\n\n  The Governor‑General may make regulations for the purposes of section 6.","sortOrder":5}],"analysis":{"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act remains focused on its original and narrow purpose: imposing a supervisory levy on self managed superannuation funds. The cap of $300 has not changed on the face of the Act, and no scope creep or expansion of purpose is evident. The specific levy amount is adjusted via regulations, which is by design rather than a change in scope."},"complexity_factors":["The Act itself is short and straightforward, but its meaning depends heavily on cross-referencing other legislation (the Superannuation Industry (Supervision) Act 1993 and the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987)","The actual levy amount is not in the Act — it is delegated to regulations, meaning the operative financial detail exists outside this document","Retrospective commencement clause ('or is taken to have commenced') adds minor legal complexity","Incorporation by reference of definitions and divisions from the SIS Act requires readers to consult multiple pieces of legislation to fully understand scope"],"plain_english_summary":"## What This Law Does\n\nThis Act imposes an **annual supervisory levy (fee)** on **Self Managed Superannuation Funds (SMSFs)** — that is, private superannuation funds that individuals run themselves rather than using a commercial super fund.\n\n## Who Does It Affect?\n\nAnyone who operates or is a member of an SMSF in Australia. There are approximately 600,000+ SMSFs in Australia, so this affects a significant number of Australians managing their own retirement savings.\n\n## What Does It Actually Require?\n\n- Your SMSF must pay an annual levy to the Australian Taxation Office (ATO), which oversees (supervises) SMSFs\n- The **maximum amount is capped at $300 per year**, but the exact amount is set by government regulations (rules made by the Governor-General — essentially the federal government)\n- Because the actual amount is set in regulations rather than in this Act itself, it can be adjusted without needing a full Act of Parliament\n\n## Why Does It Exist?\n\nThe levy funds the cost of the ATO supervising and regulating SMSFs — checking they comply with superannuation laws, conducting audits, and protecting members' retirement savings. Essentially, SMSF operators pay for the cost of their own oversight.\n\n## Practical Impact\n\nIf you run an SMSF, expect to pay an annual levy (currently $259 as set by regulation) as part of your fund's running costs. This is typically paid as part of your SMSF's annual tax return lodgement."},"issue_detection":{"absurdities":[{"type":"retroactive_impossibility","section":"2","severity":"low","reasoning":"The phrase 'commences, or is taken to have commenced, as the case requires' introduces an unresolved ambiguity. The phrase 'as the case requires' is not defined, leaving open what circumstances would trigger the deemed commencement versus actual commencement. If the Occupational Superannuation Laws Amendment Act 1991 commenced before this Act received Royal Assent, the 'taken to have commenced' limb implies retrospective operation, which could impose levy obligations on entities before the imposing Act legally existed.","confidence":0.65,"description":"Retroactive or contingent commencement tied to another Act's commencement, with ambiguous 'or is taken to have commenced' language suggesting potential retroactive application without specifying what triggers the alternative 'taken to have commenced' scenario."},{"type":"retroactive_impossibility","section":"3","severity":"medium","reasoning":"The SIS Act 1993 postdates this Act by approximately two years. Applying SIS Act provisions 'in a corresponding way' to a 1991 Act creates a bootstrapping problem: the 1991 Act's commencement and early operation could not have been governed by a 1993 Act. Any conduct or obligations arising between 1991 and 1993 would have operated in a definitional vacuum, as the incorporated provisions simply did not exist. This is a structural flaw in the legislative drafting.","confidence":0.75,"description":"Section 3 purports to apply provisions of the Superannuation Industry (Supervision) Act 1993 (SIS Act), a statute enacted in 1993, to an Act that commenced in 1991. This creates a temporal impossibility where a 1991 Act is governed by interpretive and definitional provisions of a statute that did not yet exist at the time of commencement."},{"type":"other","section":"6","severity":"low","reasoning":"A fixed nominal cap set in 1991 dollars represents a fraction of its original real value in contemporary terms. The Act provides no mechanism for the cap to be updated other than by primary legislation, while simultaneously delegating the actual amount to regulations. This creates a two-tiered rigidity: regulations can adjust the levy downward freely but are permanently constrained by a ceiling that Parliament must amend to raise, regardless of economic circumstances.","confidence":0.55,"description":"The $300 cap on the levy amount has not been updated since 1991, meaning the real value of the maximum levy has been substantially eroded by inflation. While not a logical flaw per se, the static nominal cap creates a structural absurdity where the legislative ceiling becomes increasingly meaningless over time without amendment."},{"type":"other","section":"4","severity":"low","reasoning":"Missing section numbers in legislation typically indicate a repealed provision. Without a transitional or saving clause, any obligations, rights or definitions that existed in the former section 4 may be legally uncertain. The absence of any acknowledgment of this gap in the remaining text leaves open whether cross-references to section 4 (if any existed in related instruments) remain operative.","confidence":0.7,"description":"Section 4 is entirely absent from the Act. The Act jumps from section 3 to section 5 with no section 4, creating a structural gap in the legislative numbering that suggests either deliberate repeal or drafting error, with no saving provision or explanatory note provided."}],"contradictions":[{"severity":"medium","section_a":"2","section_b":"3","confidence":0.72,"description":"Section 2 establishes commencement by reference to the Occupational Superannuation Laws Amendment Act 1991, but section 3 applies provisions from the Superannuation Industry (Supervision) Act 1993. These two reference points are temporally irreconcilable: the Act commenced in 1991 but is governed by a 1993 interpretive framework, meaning the Act's operative provisions and its interpretive provisions have different and conflicting temporal origins."},{"severity":"high","section_a":"6","section_b":"7","confidence":0.85,"description":"Section 6 establishes that the levy amount is specified in regulations 'for the purposes of this section', while section 7 grants the Governor-General power to make regulations 'for the purposes of section 6'. This creates a circular delegation: section 6 defines the levy by reference to regulations made under section 7, and section 7 exists solely to authorise regulations for section 6. The levy amount is therefore entirely dependent on subordinate legislation with no default or fallback amount specified in the Act itself, meaning if no valid regulation exists, the levy is technically unquantifiable despite being 'imposed' under section 5."},{"severity":"high","section_a":"5","section_b":"6","confidence":0.88,"description":"Section 5 imposes the levy as a matter of law, declaring it imposed by reference to the Taxation Act 1987. However, section 6 makes the actual quantum of the levy entirely contingent on regulations. If no regulation has been made specifying an amount, a levy is legally imposed under section 5 but has a legally indeterminate amount under section 6. The imposition and the quantification mechanisms are structurally decoupled, creating a situation where an entity may be subject to a levy obligation of unknown or zero amount."}]},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This legislation remains tightly focused on its original purpose: imposing an annual supervisory levy on SMSFs. The scope has not expanded beyond this single function since enactment."},"complexity_factors":["Extremely short statute - only 7 sections total","No defined terms section - relies entirely on definitions from other Acts","Minimal conditional logic - only one substantive operational section (section 5 imposing the levy)","Single cross-reference to the Superannuation Industry (Supervision) Act 1993 for interpretation rules","Simple monetary cap ($300) with delegated authority to regulations for actual amount","No exceptions, exemptions, or nested conditions"],"plain_english_summary":"This law creates a **fee that self-managed superannuation funds (SMSFs) must pay to the government** each year.\n\n**What it does:**\n- **Imposes a levy** (a type of tax or fee) on SMSFs to help pay for their government supervision and regulation\n- The levy is collected under a separate tax law (the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987)\n- The **maximum amount** that can be charged is **$300 per year**, though the exact amount is set by government regulations\n\n**Who it affects:**\n- Anyone who runs a **self-managed super fund** (a private superannuation fund that people manage themselves rather than using a commercial super fund)\n\n**Why it matters:**\n- SMSFs need government oversight to protect members' retirement savings\n- This law ensures SMSFs contribute to the cost of that oversight through an annual fee\n- It keeps the system fair by making SMSF operators pay for their own regulation rather than taxpayers generally"}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-self-managed-superannuation-funds-supervisory-levy-imposition-act-1991","history":"/api/acts/superannuation-self-managed-superannuation-funds-supervisory-levy-imposition-act-1991/history","analysis":"/api/acts/superannuation-self-managed-superannuation-funds-supervisory-levy-imposition-act-1991/analysis","conflicts":"/api/acts/superannuation-self-managed-superannuation-funds-supervisory-levy-imposition-act-1991/conflicts","importantCases":"/api/acts/superannuation-self-managed-superannuation-funds-supervisory-levy-imposition-act-1991/important-cases","documents":"/api/acts/superannuation-self-managed-superannuation-funds-supervisory-levy-imposition-act-1991/documents"}}