Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991

What This Law Does

This 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.

Who Does It Affect?

Anyone 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.

What Does It Actually Require?

• Your SMSF must pay an annual levy to the Australian Taxation Office (ATO), which oversees (supervises) SMSFs
• 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)
• 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

Why Does It Exist?

The 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.

Practical Impact

If 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.