More super levies announced

12-May-2015

By Wouter Klijn

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The Australian Prudential Regulation Authority (APRA) would raise $46.9 million in additional superannuation supervisory levies over a four-year period starting from the 2016 financial year, the federal government announced in tonight’s budget.

“This will fully recover the cost of superannuation activities undertaken by the Australian Taxation Office and the Department of Human Services, consistent with the government’s cost recovery guidelines,” the budget papers said.

The new measure means financial institutions will have to pay $11.6 million in additional levies over 2015/16, $11.6 million in 2016/17, $11.7 million in 2017/18 and $12 million in 2018/19.

APRA-regulated super funds need to pay levies for the funding of APRA, ASIC, the Australian Taxation Office and the Department of Human Services and in recent years they have had to pay $429 million in levies to fund the implementation of SuperStream.

Industry associations have been critical of the levies, stating there is little clarity on the way the costs are calculated.

The Australian Institute of Superannuation Trustees (AIST) tonight said it remained concerned about the lack of transparency in the methodology behind the raising of the levies.

“AIST will be seeking to consult with the government and Treasury to ensure that cost recovery guidelines are applied in raising supervisory levies,” AIST chief executive Tom Garcia said.

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