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Account for ATO SMSF Supervisory Levy

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Mclowd users frequently ask how to enter the SMSF Supervisory Levy (also known as ATO Levy, SMSF Levy, Supervisory Levy). All SMSF funds are required to pay this levy each year. The amount varies from year to year and there are differing rules if you are a new fund or are winding your fund up during the year. The process for new funds and winding up funds are discussed further below.

For an existing fund, Mclowd automatically includes this levy at Row L on Section D: Income Tax (Step 3 – Tax Profile – Year End Process).

NEW FUND – SMSF SUPERVISORY LEVY

If you are a newly registered fund, then the SMSF is required to pay a SMSF supervisory levy for the current financial year and the following financial year, when they lodge their first SMSF Annual Return.

You can add the additional supervisory levy when you are completing your Year End Process for the fund. After you have completed Steps 1 and 2 in the Year End Process, at Step 3: Tax Profile you should:

  • Select the down arrow to the right of Please Select… to show available options.
  • Select Review and Edit Tax Data and choose EDIT.

Note: Do not select ‘Accumulation Only’ or ‘Accumulation and Pension’, as you will not be able to update the SMSF supervisory levy figures as outlined below.

Proceed to go through each page and check and then SAVE them. On the screen titled Section D: Income Tax – Taxable Income for 20XX-20XX, scroll to the bottom of the page – there you will see three rows where the supervisory levy is mentioned. Mclowd prefills ‘Label L: Supervisory Levy’ with the correct amount.

Enter the additional SMSF supervisory levy at Label N as shown below. This will update the ‘Amount Due or Refundable’.

Select SAVE INCOME TAX and then proceed to complete the rest of the Income Tax section.

WINDING UP FUND – SMSF SUPERVISORY LEVY

If your fund is winding up, you may not be required to pay a supervisory levy if you paid it in the previous financial year. If you are:

  • Not a newly registered SMSF, you are not required to pay the levy as you already paid for the current financial year.
  • A newly registered SMSF, the amount payable will be $259 to cover the current financial year.

If you have paid the SMSF supervisory levy for the previous financial year, you can effectively reduce your SMSF supervisory levy by the amount you paid last year.

You can reduce the supervisory levy when you are completing your Year End Process for the fund. After you have completed Steps 1 and 2 in the Year End Process, at Step 3: Tax Profile, you should:

  • Select the down arrow to the right of Please Select… to show the available options.
  • Select Review and Edit Tax Data and choose EDIT.

Proceed to go through each page and check and SAVE them. On the screen titled Section D: Income Tax – Taxable Income for 20XX-20XX, scroll to the bottom of the page – there you will see three rows where the supervisory levy is mentioned. Mclowd prefills Label L: Supervisory Levy with the correct amount.

Enter the adjustment for the SMSF supervisory levy at Label M as shown below. In Mclowd you just enter the number. Do not enter a minus sign – that will update the ‘Amount Due or Refundable’.

Select SAVE INCOME TAX and then proceed to complete the rest of the Income Tax section.