Cost recovery of superannuation activities
The Government proposes to recover the cost of superannuation related activities undertaken by the Australian Taxation Office (ATO), by increasing the Financial Institutions Supervisory Levy (FISL). The increase in the levy from 1 July 2018, is estimated to raise $31.9 million dollars over four years and will be raised in a manner consistent with the Australian Government Cost Recovery Guidelines.
While the increase in the FISL is intended to cover the full cost of ATO superannuation related activities, the Budget Papers do not state what the amount of the increase will be.
The Government is increasingly focused on recovering the cost of Government departments carrying out their regulatory activities by increasing the levies applied to business. A recent example of this was when the Australian Securities and Investments Commission announced that the one off cost of registering as an SMSF auditor would increase from $107 to $3,429.
As the Government has not specifically stated how much the FISL will be increased, we remain concerned that significant increases could be imposed.