Superannuation funds and other major financial services organisations should brace for a significant hit via the financial services industry levies.
The Government has used the Budget to announce that it will be raising additional revenue of $46.9 million over four years from 2015-16 by increasing the supervisory levies paid by financial institutions.
It said the higher levies would be derived from fully recovering 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 move caused the expression of immediate concern from the Australian Institute of Superannuation Trustees (AIST), with its chief executive, Tom Garcia, pointing to what he described as a lack of transparency in the methodology behind the raising of levies.
“AIST will be seeking to consult with the Government and Treasury to ensure that Cost Recovery Guidelines are applied in raising supervisory levies,” he said.
Association of Superannuation Funds of Australia chief executive, Pauline Vamos, said the increases to superannuation industry levies need to be matched by greater transparency and accountability from all agencies involved in their expenditure.
“APRA-regulated superannuation funds have faced increased levies over the past few years, in particular for costs related to the implementation of the SuperStream reforms.
In return, there has been little accountability or transparency from these agencies in regards to how this money is being spent. We believe providing greater detail to funds would result in a better allocation of these resources,” she said.
“In addition, we would like to see greater consideration given to the equity of the current levy arrangements, to ensure that all participants in the superannuation system pay their fair share,” Vamos said.
