SPAA concerned about APRA levy burden
Self-managed superannuation funds (SMSFs) stand to be disproportionately burdened by the Government's move to include them in a $121.5 million Australian Prudential Regulation Authority (APRA) levy.
That is the analysis of the Self-Managed Super Fund Professionals' Association (SPAA), which claims the logic behind including SMSFs in the levy collection is both "grossly inequitable" and "fundamentally flawed".
Commenting on the move last week, SPAA chief executive Andrea Slattery said there were about 470,000 SMSFs and, based on the call for such funds to pay an extra $38 million in levies to help cover the cost of SuperStream, it would equate to about $80 for each fund in the sector.
"As most SMSFs have only one or two members, it would mean each member would be paying, on average, about $40 extra for the cost of the SuperStream measures," Slattery said.
She said that while most APRA regulated funds would be able to spread the cost of any levy across thousands of members, the cost would be considerable for SMSF members.
"That is hardly equitable," Slattery said.
She said that just because the average SMSF member had a higher balance than the average APRA fund member did not mean the Australian Taxation Office would incur higher SuperStream costs for SMSF members versus APRA fund members.
"In fact, the opposition might well be the case as APRA funds are more likely to have higher volumes of contributions and other transactions," Slattery said.
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
